New visitor to this forum

[Fats25]

I was just having a quick browse on here to see if there were any "moving to Dubai FAQs", but unable to find exactly what I was looking for.

I was asked before Xmas to apply for a job with one of my major customers (I am currently a director of my own Ltd company providing IT consultancy in UK), and after much discussion with Mrs Fats I submitted my CV today, which will generate the offer package, and if it all adds up financially I could be there in a matter of weeks. No-one else to interview for it - is just a question of if it is right for us financially.

Lots to think about with what to do with vehicles, house, pets etc (fortunately no kids), and a crash course in Tax accountancy as moving from Ltd company Director, to an expat package as non resident will take a lot of getting my head around. Early indications are Mrs Fats company would transfer her on a local package, which is at least one less thing to think about!

A few names I recognize from Biker Banter and Spurs thread on here - Chilli, IanUAE, and Asterix.

Sure I will be here asking some questions over coming weeks. If there is a FAQ guide - please point me in the right direction!

[K50 DEL]

I don't think that there's an FAQ per se but we're a friendly bunch in this corner of PH and whatever question you have, I'm sure someone here will be able to answer.... as a 'for example' I went from my own IT company to the staff position of IT Manager at one of my old clients here in Dubai as well.... that was 3 years ago and I've never looked back!

[shirt]

Fats25 said:

moving from Ltd company Director, to an expat package as non resident will take a lot of getting my head around.

as long as you finish work in the uk before the start of the new tax year it is dead simple.

i was a ltd. co. in my last year in the uk. i wound the company up the day before the new tax year started and moved to dubai a few weeks later. no tax to pay at all in the uk since then.

[Fats25]

shirt said:

as long as you finish work in the uk before the start of the new tax year it is dead simple.

i was a ltd. co. in my last year in the uk. i wound the company up the day before the new tax year started and moved to dubai a few weeks later. no tax to pay at all in the uk since then.

Out of interest are you paid locally in Dubai on a local package?
Or are you on an ex-pat package paid into UK?

I suspect that I will be the latter (where as Mrs Fats will be the former). Therefore I suspect that HMRC will take tax, and it will be my responsibility to obtain a rebate.

I have an accountant I will be discussing this with formally when I receive the offer - but I like to have some other real life understandings as well!

[After_Shock]

Fats25 said:

Out of interest are you paid locally in Dubai on a local package?
Or are you on an ex-pat package paid into UK?

I suspect that I will be the latter (where as Mrs Fats will be the former). Therefore I suspect that HMRC will take tax, and it will be my responsibility to obtain a rebate.

I have an accountant I will be discussing this with formally when I receive the offer - but I like to have some other real life understandings as well!

Accountant is best person to ask, but if you are out of the UK for 90days of the year you wont pay the tax on the wages going in, but that may well have changed.

Its handy to get paid within a UAE bank account if you can as banks are funny about lending if you dont have the money being credited within the UAE, however if the MRS is being paid here then that is a way around it. Spend her money and leave yours in the UK lol

[Fats25]

After_Shock said:

Spend her money and leave yours in the UK lol

That is the plan!

The package should pay for the house, and car. Wife can pay for living, and I can save my salary for us to come back to.

However (from what I am hearing) at £10 a pint and expensive golf, that plan may not work!

[dxbtiger]

Fats25 said:

That is the plan!

The package should pay for the house, and car. Wife can pay for living, and I can save my salary for us to come back to.

However (from what I am hearing) at £10 a pint and expensive golf, that plan may not work!

10 quid pints are cheap compated to golf here it is horrifically expensive.

[After_Shock]

Fats25 said:

However (from what I am hearing) at £10 a pint and expensive golf, that plan may not work!

The golf I cant comment on as ive never struck a ball in my life, however you soon learn were to get the booze at sensible (relatively speaking) prices. If you want to drink where you want to drink when it suits then yes the booze aint cheap, work out where some deals are on and go when they are on and its much more reasonably priced. Or just drink in Bur Dubai (wife wont speak to you ever again) but the pints are cheap

[shirt]

yes i am paid locally. no experience of the latter but yes i imagine you will be liable. unless they are paying you silly money i can't see why this would be an attractive option.

[Fats25]

shirt said:

unless they are paying you silly money i can't see why this would be an attractive option.

Silly money is only ever too little!

As I say a lot of this is still open for discussion, so I can only comment on what "I think" I know. Should know more in the next few days. The way it was explained to me (by my prospective boss, who is from the US working in UK), is that there are two ways of getting me out there:-

1) Local package. Basically salary, healthcare, pension, car etc
2) Ex Pat package. Salary, healthcare, pension, car, relocation, house, maid, x number of flights to and from UK, visa for wife (if required), schooling (if we had kids).

The salary in option 1 would be less than in option 2. The rest of the perks obviously do not need explaining. Hence most people will go for option 2. I need to do the homework, but it looks like option 2 will be better for me - am going to see if they will swap schooling for golf club membership!

[dxbtiger]

Most people are on a sort of middle ground between the two.

Are you saying the option 2 will be paid into UK?

I don't know anyone who does that.

[shirt]

package 1 is generally given when people are already in the country. 2 is more usual and is how our company works although the long termers say thing are changing towards the former.

as long as the totals are the same i would plump for option 1. it is much better for you to have your basic salary as high as possible for a few reasons reasons:

1] there are no pensions here but companies do pay an end of service benefit. when you leave they will give you a lump sum based on your basic salary only x length of service.

2] there is very little enforceable employment law, pretty much the only thing that is protected is basic salary payment. your contract could be changed and all your benefits lost and there'd be little you could do about it other than walk.

3] banks tend to look at your basic pay when discussing any loans due to point 2. also your booze licence allowance is linked to your basic pay!

also the 90days thing for the uk isn't neccesarily the be all and end all. HMRC look at your ties to the country. i.e. if you had a kid in a uk school, had a hospital stay on the NHS or your wife still lived there they would pursue their share.

also don't think the uae is a paradise. it is a mere 23degC and raining today!


speak to your accountant, that's what i did and his advice was 100% accurate.

[Fats25]

dxbtiger said:

Most people are on a sort of middle ground between the two.

Are you saying the option 2 will be paid into UK?

I don't know anyone who does that.

That is my understanding..... but I will be looking into further. It may be possible to get that changed - I believe the company have an off-shore payments facility from Bermuda for ex-pat packages globally. I need to find out more - as it may be more suited for them, than it is for me.

shirt said:

lots of good information - especially this piece:-

speak to your accountant, that's what i did and his advice was 100% accurate.

A lot of what you say there, seems to suggest the ex-pat piece will be better, as the security is within the role within the company, rather than the location. I think that is why it is the option most used. i.e. I am an employee of the company globally that just happens to be based in Dubai, rather than a Dubai employee that can have their package changed etc.

I am going to stop wasting all of your time, until I find out more (have a meeting scheduled for this Friday to discuss further). Has been good for me though for some food for thought. Appreciated.

Edited by Fats25 on Tuesday 7th January 10:25

[IanUAE]

I used to get paid into my UK account minus the minimum AED 6000 per month and never had to pay any tax in the UK. I had no family or mortage in the Uk though.

[After_Shock]

dxbtiger said:

I don't know anyone who does that.

Are some big employers out here who do it, Khansaheb, Baker Hughes for example, come across it quite a bit in my job as it causes nightmares with banks when people try to borrow money to buy cars.

[shirt]

Fats25 said:

I am an employee of the company globally that just happens to be based in Dubai, rather than a Dubai employee that can have their package changed etc.

you would think so but if they really want to get rid of you they can do so at their will with no comeback. i have seen it happen and it is not pretty.

[Fats25]

IanUAE said:

I used to get paid into my UK account minus the minimum AED 6000 per month and never had to pay any tax in the UK. I had no family or mortage in the Uk though.

That is one thing I have seen with regards to "ties".

I do have a mortgage and a property, that I will be looking to rent out. I read somewhere that there will be tax on the repayment, but not on interest (could be the other way round!) - so is something I need to look into further. Possibly I will switch to interest only mortgage? Possibly I will pay repayments up front for 2 or 3 years (if allowed). Needs to be looked into further.

Aside from the property, once my wife joins me (realistically later on in the Summer), there will be no ties in UK (other than the property) to count towards me paying tax.

shirt said:

Fats25 said:

I am an employee of the company globally that just happens to be based in Dubai, rather than a Dubai employee that can have their package changed etc.

you would think so but if they really want to get rid of you they can do so at their will with no comeback. i have seen it happen and it is not pretty.

I am not sure they can.... perhaps if I am a local they can, but as an ex-pat they will need to adhere to the local country rules - my expectation (based upon brief conversations) is it will be a 6 or 12 month notice period either way. Agreed - not that means in Dubai, but within the organization. Is quite a senior role. Again - I could be wrong! However this is what I meant by some additional security.

I'm hoping not to need loans, I don't have them in the UK, and hoping to not require them in Dubai - so hopefully that is one I don't need to be concerned with. I just need money to live on, and hopefully a pot of money to come back with (or move on with to another country).

[shirt]

if you are paid into a uk account and the contract is provided by their uk office [with address etc.] then yes you will prob. be safe.

i have had colleagues dismissed in very lousy fashion where, if this was the UK, they would haev cleaned up at a tribunal. However it is not the UK and they were told to jog on and be grateful for what severence was offered. not sure what others on here think but i do not feel secure in my position and that has nothing to do with ability or work ethic. missed the scythe in 2 quite brutal culls last yr, it's a hire and fire culture out here, glory tends not to be shared but blame certainly does.


re: rental income in the uk, there is a threshold so you only pay tax if you go over that. again your accountant can advise.

[TNW]

I also work for a global company and moved within it from the U.K to Dubai. I took a leave of absence in the U.K (to keep return options open) but am employed and paid on local contract. Best of both worlds

Your U.S boss might not get it as they get taxed by Uncle Sam wherever they are in the world.

Edited by TNW on Tuesday 7th January 15:35

[Fats25]

TNW said:

I also work for a global company and moved within it from the U.K to Dubai. I took a leave of absence in the U.K (to keep return options open) but am employed and paid on local contract. Best of both worlds

Your U.S boss might not get it as they get taxed by Uncle Sam wherever they are in the world.

Just curious - what do you mean by the bit in bold? Do you mean to give yourself an option to move companies whilst in Dubai?

Also - you are 100% correct re the US implications - they do not have the non-domicile/non-resident options we have. Hence I am not sure he has it 100% correct. I am meeting with HR on Friday, so will clarify.

I am also fortunate that a good mate of mine places ex-pats in Dubai (from UK - he lived in Dubai for years) and he is going to walk me through the options when I have the offer.