Overseas Contract - 12 months

[Boleros]

I'm going to look for a seasoned tax accountant but the question is bugging me. I have an opportunity for a 12 month consulting contract in the Middle East and understand that if it's for a full tax year I won't pay income tax (subject to other criteria) but I'm a bit confused about starting midway through the actual tax year - Aug 24. Would there be any tax implications for the remaining 7-8 months? I've been PAYE all my life so this is all very new to me, I will effectively be a subcontractor.

Any general pointers/advice gratefully received.

[Martin315]

You need to be out for a full tax year, so if you were starting now, to avoid UK tax you can’t return on a permanent basis until April 2026

[Boleros]

Balls. I was afraid it would be something like that. Sigh.

[mikef]

https://assets.kpmg.com/content/dam/kpmg/pdf/2016/...

Some years ago I worked for 18 months in a low-tax country (actually no income tax at that time) and was non-resident for UK tax. However a caveat is that if you have to return to the UK in an emergency (it happened to a colleague), you become liable for all the UK tax you would otherwise have avoided

[Boleros]

Thanks for the info and graphic. Same deal here, no income tax in-country so keen to keep it that way if I can. I've been offered a 12-month rolling contract subject to a couple of points which I'm waiting on, once confirmed I'll engage with a tax advisor. However as I understand it (so far) I can have a split year tax-free as along as the subsequent tax year is spent out of the UK with no more than 31 days spent in the UK in that time. Anything over that then all bets are off - I think.

[WelshnThirsty]

Welcome to the Middle East.

I came on a 12 month contract in 2007 and have never gone back. The 12 month contract is really to see if you fit in, the culture is totally different from the UK / EU, just be aware of that, efficiencies are not the same, deadlines are not the same.

If the contract finishes mid year and you like the country, look for another role, or take the time to travel and as long as you in the UK for 90 days? I think it is, then you will not pay the tax.

Edited by WelshnThirsty on Friday 14th June 03:57

[Boleros]

Thanks, still not quite dotted the Ts etc so hanging around a bit which is a little frustrating. Contract begins in early August and I'm fully expecting it to fall over at the last moment. We shall see.