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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4423
Experience:  FCCA FCMA CGMA ACIS
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I have been offered a job with a day rate of pay of $235 for

Customer Question

I have been offered a job with a day rate of pay of $235 for 228 days per year with 137 days unpaid leave what would be my Tax & NI liability if I do not qualify for tax free status
Regards
Richie
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello Ritchie, I'm Keith and happy to help you with your question.
Please confirm your nationality and that pay rate in US$?
Customer: replied 3 years ago.

I am English and the pay rate is in USD

Customer: replied 3 years ago.

I am English and a UK resident the work will be on ships around the world but I will be living in hotels primarily in Oman, Egypt & Sri Lanka the pay rate is 325 USD per Day,

Expert:  bigduckontax replied 3 years ago.

That, on today's rate of exchange is about GBP 145 a day, but you won't get that 1.61 rate!

Let's say 140 quid a day, 32K pa. Deducting your personal allowance of 10K leaves you with 22K, taxable at 20% = GBP 4400 Income Tax.

Assuming that you are employed and not self employed Class 1 NI on 32K pa is GBP 2885.

If classed as self employed Class 4 at GBP 2163 plus Class 2 at GBP 2-75 per week.

As you are spending over 91 day per year in the UK presumably on leave you are likely to be classed as resident for UK Income Tax purposes. Please come back to me if this is not the case.

From what you say you will not be entitled to Seafarers Allowance. Here is HMRC advice on this complex allowance:

'To get the deduction from your seafarer earnings you must have an ‘eligible period’ of at least 365 days that is made up mainly of days when you were absent from the UK.'

If after this deployment you intend to come back to the UK please advise. Also your last post indicates a change in the daily rate, your original qustion said $235 a day, does make a difference you know!

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.