Anyone working in Nigeria?

[thewave]

As above really.

I'd be interested to see how you are being taxed.

Example

Working month on month off (so UK resident)
You're working for a UK company in Nigeria
You receive a P60 with say £70,000 gross earnings and £20,000 uk tax deducted on PAYE.

Have you had any further liability to UK tax or had refunds?

Cheers.

[Olf]

No but like most offshore work you'd be looking for the employer to cover all local taxes and liabilities.

Where there is a tax agreement in place between the country of work and the UK some of the UK tax liability might be offset by the tax paid locally. However this is unlikely with a PAYE engagement.

[thewave]

Olf said:

No but like most offshore work you'd be looking for the employer to cover all local taxes and liabilities.

Where there is a tax agreement in place between the country of work and the UK some of the UK tax liability might be offset by the tax paid locally. However this is unlikely with a PAYE engagement.

I would be suggesting any PAYE salary would need to be grossed up by the local taxes paid and then claimed as a relief.

Thoughts?

[Olf]

thewave said:

Olf said:

No but like most offshore work you'd be looking for the employer to cover all local taxes and liabilities.

Where there is a tax agreement in place between the country of work and the UK some of the UK tax liability might be offset by the tax paid locally. However this is unlikely with a PAYE engagement.

I would be suggesting any PAYE salary would need to be grossed up by the local taxes paid and then claimed as a relief.

Thoughts?

Depends on the co. the subject is working for. Many won't allow you to do this. It's a great idea but work permits etc are secured on undertstandings that you and I may never be privvy to. Most co.s in the industry I assume we are talking about force you into a 'staff' position with no obligation of future employ and with all local liabilities settled. PAYE into the UK is the only choice.

I would have thought in this case that the only route would be to negotiate an alternative point of origin. Lots of guys are Thailand based...

[thewave]

Olf said:

thewave said:

Olf said:

No but like most offshore work you'd be looking for the employer to cover all local taxes and liabilities.

Where there is a tax agreement in place between the country of work and the UK some of the UK tax liability might be offset by the tax paid locally. However this is unlikely with a PAYE engagement.

I would be suggesting any PAYE salary would need to be grossed up by the local taxes paid and then claimed as a relief.

Thoughts?

Depends on the co. the subject is working for. Many won't allow you to do this. It's a great idea but work permits etc are secured on undertstandings that you and I may never be privvy to. Most co.s in the industry I assume we are talking about force you into a 'staff' position with no obligation of future employ and with all local liabilities settled. PAYE into the UK is the only choice.

I would have thought in this case that the only route would be to negotiate an alternative point of origin. Lots of guys are Thailand based...

I'm not saying the company do it. In this instance, the guy works for a birtish company, gets a salary which is taxed under normal circumstances in this country.

However. As he is also resident for Nigerian taxes, his company pay his personal taxes in Nigeria, to the tune of approx 25% of his gross pay. Now as a UK resident he is taxed on his worldwide income, and therefore I suggest for tax reporting, his gross salary should be grossed up for this amount, and relief claimed for the same amount.