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Post by aramcodream on Sept 23, 2013 17:19:52 GMT
Hi,
can anyone please advise on the benefit of using an Offshore account vs normal UK account if I will be working in the Kingdom ?
is there any potential benefit ? my understanding is that if I live more than 6 months outside UK, I'm not liable to tax. so I believe I can still receive my salary to my UK account without having to pay tax.
I tried today to open an offshore account with HSBC, and it look so much difficult !!! I'm an HSBC Premier customer since 7 years with them, and I have been told they need to assess the connection between my nationality and saudi :roll:
did anyone had any problem opening an account with them ?
is the salary actually paid by ARAMCO SAUDI or ARAMCO OVERSEAS ?
Can any British advise on how they repatriate back their salary ?
thanks
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ndad
Member
Posts: 11
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Post by ndad on Sept 23, 2013 18:31:35 GMT
I've had a similar discussion with HSBC. My understanding was that because we will be paid in GBP, the money goes into the UK bank account. Aramco can pay some into a local account in SRs so you have some spending while in country.
With regard to tax, does the 6 months criteria allow for short returns to the UK?
thanks
ndad
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Post by ds841 on Sept 23, 2013 18:59:55 GMT
Hi I am heading to Saudi at the end of the month and have just opened an offshore account with Lloyds tsb. It was really easy and didn't take much effort at all. They are worth a look if you are still considering an offshore account. I also spoke to an accountant about the tax issues and they told me that any money that is taken into a UK onshore account is liable for taxation. So the best way around this is to use an offshore account. Check out this link it will explain what to do. www.hmrc.gov.uk/international/leave-uk.htmregards ds841 |
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Post by bangperan on Sept 24, 2013 3:24:16 GMT
For my understanding, if we signed protected exchange rate, all of our salary will be transferred in Riyal by Aramco. That's why we need to open a local bank account.
From our local bank acc, we can manage ourself to transfer part of our salary into our home country bank acc. Is that correct?
Is there any HSBC branch in Dhahran or other cities near to Dhahran?
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Post by vpainter on Sept 24, 2013 5:55:48 GMT
I believe the HSBC bank is the one near IKEA not far outside of DHA camp.
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Post by azraeil on Sept 24, 2013 7:44:02 GMT
bangperan,
That is correct. For Non-UK citizens or personnel that does NOT have a Point of Origin coming from the UK, to be eligible for the Currency Protection, 100% of your salary MUST be deposited to a local Saudi Bank.
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Post by aramcodream on Sept 24, 2013 8:30:12 GMT
Thank you all for your input
Azraeil/ or other,
can I please kindly ask you how the salary will be paid for non-UK national, however, with a point of origin in the UK ?
Thanks
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Post by azraeil on Sept 24, 2013 9:49:57 GMT
That is correct. For Non-UK citizens or personnel that does NOT have a Point of Origin coming from the UK, to be eligible for the Currency Protection, 100% of your salary MUST be deposited to a local Saudi Bank.
For Non-UK Citizens but with a Point of Origin from the UK, you will not be eligible for the Currency Exchange Protection scheme. As such, you can deposit your salary to whatever bank you choose.
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Post by Abq_Expat on Sept 29, 2013 6:57:41 GMT
I have also been a HSBC premier customer for about 5 years and tried to open an offshore account with them in the UK and they rejected my requested citing that I don't meet their criteria. They wont tell me that which criteria did I fail to meet as apparently I met all of them and my premier manager was very confident that I will receive details of my offshore account within 10 days.
In terms of the tax, I may be wrong so happy for those who have knowledge about this to correct me, here is the summary of so many docs/ policies I have read from HMRC website.
• If you work abroad full time, then you need to complete P85 form to declare yourself ‘non-resident’. To become a fully non-resident you must spend a full tax year outside the UK and less than 183 days in the UK. The purpose of those 183 days visits to UK must not be business related.
• You are not required to pay tax on your income from outside the UK, if you are non-resident. It doesn’t matter if you are paid in your onshore account but as long as you are paid by a company which is not in the UK, you don’t have to pay tax. In our case we are paid by Saudi Aramco in Saudi Arabia so this income shouldn’t be liable to tax.
• When you are non-resident, you still have to pay tax on your income from the UK. This includes income from your rental property or interest earned on your savings in onshore account. Any interest earned on savings in an offshore account is not subject to tax.
• Whenever you plan to return to the UK to become resident, you will have to pay tax on all your income for that tax year. Things get a bit complicate here as whether you need to pay all the income or just the money that you bring with you depend on your residency and domicile status.
• Depending on your domicile status, when you return, you may not have to pay tax on any income for that tax year which has gone in to an offshore account and you don’t transfer it to your UK account.
• That’s the reason that most expats plan their return around the April time of the year as due to start of a new tax year they don’t have to worry a lot about paying a hefty tax bill.
Here is an extract from the link someone posted above:
If you leave the UK and become 'not resident' you will pay UK tax only on your income and, in some circumstances, your capital gains from the UK.
But just because you leave the UK, it does not mean that you are automatically not resident. Your residence status will depend on:
• the purpose of your time abroad
• how often you visit the UK after you have left
• the purpose of your visits to the UK
• what connections you keep in the UK, such as family, property, business and social connections
Hope above is clear, and I will be grateful if someone can correct me if I’m wrong.
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