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Where Taxpayers and Advisers Meet

Income Tax on rotational Foreign Income

Jay Squared
Posts: 3
Joined: Mon Sep 10, 2018 2:36 pm

Income Tax on rotational Foreign Income

Postby Jay Squared » Mon Sep 10, 2018 2:59 pm

Hello,

I may have a role in Kuwait working on a 28/28 rotation, I will be working solely in Kuwait and not doing any work within the Uk. I have been told Kuwaiti taxes will be paid which I understand is 5%. I still have ties in the Uk (House, Wife and Kids). Is there a way of reducing my UK Tax liability ? should I stay out of the Uk for 2 or three more weeks per year ?

Also should I then need to pay UK income tax. Is this calculated in the same bands of Basic rate, Higher rate etc ? Can anyone give me a quick figure on say how much I'd pay on £100k earned in Kuwait.

Just to add, I have been working in the Ulk via my LTD company so wold it be easier or more efficient to transfer money into my company ?

Thanks

J

Tom7000
Posts: 69
Joined: Wed Aug 06, 2008 3:30 pm

Re: Income Tax on rotational Foreign Income

Postby Tom7000 » Mon Sep 10, 2018 4:27 pm

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

Work your way through that. See if UK taxes are due under your circumstances

Jay Squared
Posts: 3
Joined: Mon Sep 10, 2018 2:36 pm

Re: Income Tax on rotational Foreign Income

Postby Jay Squared » Tue Sep 11, 2018 10:00 am

Thanks Tom,

I've read through a few times but keep tie -ing myself in knots just when I think I know where I am at then the next sentence down seems to contradict that.

Jay Squared
Posts: 3
Joined: Mon Sep 10, 2018 2:36 pm

Re: Income Tax on rotational Foreign Income

Postby Jay Squared » Tue Sep 11, 2018 1:03 pm

Is there anyone who can offer me advice and an answer of where I stand ?

I dont mind paying for a service.

Thanks

John

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Income Tax on rotational Foreign Income

Postby GlobalTaxAdviser » Wed Sep 12, 2018 11:18 pm

Hi

Based on the information provided very likely you will be considered to be resident in the UK as you have a home in the UK. If not then probably get caught under number of ties

Actually the 5% is only a retention which public and private institutions have to withhold from foreign companies in lieu of taxes. The Kuwait Corporate tax rate is 15% and likely you will end up paying 15% on profit (less 5% retention tax) which probably can be offset against UK tax depending on double tax treaty

A UK company could delay tax on dividends

Kind Regards

GTA


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