Working Abroad Query

irishrower86

Hi,

Firstly apologies for what may be a basic question that is answered elsewhere on the forum, but I am under a bit of time pressure.

I have been offered a job in Saudi Arabia with a UK based company through a UK based recruitment agency. The job is a 3 month contract role, but it is very likely that I will be staying on for another 3 months after that. Failing this I will be returning home for a maximum of 3 weeks and then going to Australia.

Currently I am on contract work through an umbrealla company, paying all the PAYE charges etc.

I have been given a few options by the UK recruitmant agency such as setting up a Limited company in the UK or joining an umbrella company in the UK. I imagine each of these leaves me open to UK tax.

The other options I have is set up a Limited company in Ireland or stay with my umbrealla company which leaves me open to Irish tax.

My question is around my time in Ireland. I do not plan to work here in 2012, only come home for short periods. The company want me in Suadi within the next 3 weeks and if I go Limited (in the UK or Irleand) I may be shutting the company down in 3 months to go to Australia. Would it be worth it to go Limited for such a potentially short period?

Sorry again if this is answered elsewhere. As I have siad the turn around on this job is 2 weeks so I'm up the wall!!

Thanks!!

srsly78

Becoming tax resident in Saudi Arabia and not paying any tax at all would be best surely? Dunno how to do that tho, need a sponsor etc.

Failing that, setup thru ltd in ireland or uk and claim loads of overseas expenses. Irish ltd can have 2 directors, and at least 1 must be resident. So get your resident bro/whoever to be other director (with no shares), while you gallavant around the world. If you become tax liable (personally) in another country you can choose how much to pay yourself from Ireland, and thus how much foreign tax to pay. Money leftover in ltd back in Ireland would be disposed efficiently in the usual manner.

Note the UK has (good for contractor) rules about "secondment" from an Irish company, maybe Oz does as well. Would need foreign employer to agree to a secondment arrangement naturally (don't see why they wouldn't if they are bringing in specialists from abroad). Don't bother with umbrella companies btw, just get a good accountant / tax advisor.

Citizenpain

OP - talk to a tax advisor - not sure if opening a limited company is the way to go for a 3 month contract. cannot really give you much adivse here unless you are willing to share how much you will be earning for the 3 months