paying income tax on overseas contracts

[lloyd1980]

Hi all

I'm after a bit of advice please.
Ive been offered a 12 month contract working for an american company in either Afghanistan or Iraq
My money would be paid in US dollars
I'd be over there for 4 months, back here for 10 days, over again for another 4 months then serve out the rest of contract in the uk.

Ive been told by company its tax free
Ive looked into it and it seems you are still liable for uk income tax on all overseas earnings unless you are clased as a non uk resident.
I'd just like to know if anyone on here has done any work over there and if you got taxed at all.
I'm no tax expert at all but it just seems funny that the company are saying its tax free and the info ive collected say otherwise.
also if i left in one tax year and came back in the next how would that affect me - ie left in oct (this tax year) returned june (next tax year)
Would I need a foreign bank account to be paid into , are there special dispensation for contractors going to afghanistan in relation to tax?????

any advice would be really welcomed guys so thanks you all
in advance

I really want to go but if it means handing 40% over to the inland revenue then i'll leave it!!!!!!

thanks lloyd

[cj-sharpy]

KBR?????? I want to work for them too.

I'm no expert but I'm syre civillian contractor pay not tax as they are out of the country for more than 6 months. Mates in the forces said that alot of contractors on contracts that ran short of 6 months were stoppong of in cyprus for a week to avoid paying tax on their income. Ask the people at KBR. They will know the crack and the ways to avoid tax alot better than you will be able to figure out your self from documents issued by HMRC

[Jimbo]

Lloyd1980, what it probarbly means is tax free at source, it was along time ago when I worked outside of the UK but the rule was then that you could not spend more than 31 days in the UK per year as long as you stuck to that it qualified you for tax free. As mentioned above best to visit the HMRC website and get some answers. Regards Jimbo

[cj-sharpy]

I would visit the site but dont take their advice as bible. HMRC will, obviously, gear their advice towards getting you to pay tax. I'm sure KBR will know te ways around paying if there are any.
I need to find out about this too as the company I work for are tendering for a job in Abu Dhabi. Just need to find out if its worth it before I volunteer

[Ohmslaw]

Hi.

The only good piece of advice I can offer you here is DO NOT WORK FOR KBR!!!

I have plenty of horror stories for you if you want to hear them all from guys who've been there and done it.

It's not all it's cracked up to be.

Unless you are out of the country from April to April you WILL be liable for the 40% tax rate when you get home.