Hello all, i am about to start a contract in the middle east for 4 months, i will be paid around $15000 Us, per month. This money will be paid into a Dubai dollar account. After i have completed the 4 months i'll have about $50,000 US left thanks to the very generous tax situation there. However, after the 4 months i'll be returning to the UK to work full time. If i bring this money to the UK i assume i'll be taxed 50% and i'll have to convert to sterling. Alternatively i could leave it sitting in Dubai accumulating interest but of not much use. Obviously i wish to adhere to the law but i would like to be as tax efficient as possible. Any help would be greatly appreciated.</p>
Questions And Answers
What do i do with dollars earned in Middle East
asked by Fabian Mallard posted 2 Years ago at 12:23
1-4 of 4 Answers
Carl Hope answered 2 Years ago at 13:23, last modified: 2 Years ago at 14:56Hi Fabian, unless there is a double taxation agreement between the country you are working in and the UK you be liable to income tax.
Fabian Mallard answered 2 Years ago at 11:48, last modified: 2 Years ago at 14:56Thanks Carl, even though there is no double taxation treaties with Dubai, is there a more efficient way to use the cash. For example i am hoping to buy a house in the London soon would it be better to purchase it via some kind of SPV set up in Dubai. Is this silly or even legal.
Carl Hope answered 2 Years ago at 15:09, last modified: 2 Years ago at 14:56Hi Fabian, unfortunatlely not, the tax man will have his dues. If you are planning on buying a house you are probably better off looking at short term savings such as deposit accounts or cash ISA.s, if longer term maybe a fixed rate bond would be appropriate, you effectively lock your capital away for a minimum of 12 months to get a better return, generally the longer the term the better the rate. Check the conditions before investing as you may be penalised if you need the money earlier. if you are married and your partner is a basic rate tax payer the look at putting the money into there name as you will be paying higher rate tax on your savings (I assume you are a higher rate tax payer)
Fabian Mallard answered 2 Years ago at 16:36, last modified: 2 Years ago at 14:56Wow, thanks for all the information Carl, I am a higher rate tax payer and so is my wife, unfortunately, i think you've put me on the right tracks. My mind was straying into silly thoughts I think!!!
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