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UK IT Contractor moving to Dubai

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6.6K views 4 replies 5 participants last post by  expatIT  
L
#1 ·
Hi
I am currently working as IT contractor in UK through my limited company (UK Company) A.
The way this works is, the actual end company B (that I work for) works with a recruitment agency C and pays to that agency
based on the number of days I work and that agency pays me. Now this agency C would pay me in the UK to my limited company and then I would
pay myself a salary/dividend from that company. That a typical way a contractor works in UK (in an outside IR35 arrangement).

I now have a potential offer for a contract in which I will be allowed to work from UAE.
So once I move to UAE, the way this will work is, the agency C has advised they will be able to pay me directly in the UAE, a bank transfer to UAE but they will
pay to a company D that is based in UAE and that company D can pay me (I will not be employed by the the agency, I will be issued a 6 months contract)

Can someone please advise if someone has done it and how to go about setting up company in UAE, what kind of company (D) I need to setup in UAE, is an
umbrella company in UAE an option and and on a high level what sort of taxes I will be subject to, here in UK and in UAE ?

Thanks !
 
S
#2 ·
Hi,
Welcome to the forum - that sounds a bit complicated!
Its easy to setup a Freezone company in the UAE - this will cost around £6000 (depending on which Freezone you choose - there are loads to choose from)
There are no direct taxes in the UAE (other than 5% VAT).
However - just because you live and work in the UAE does not automatically stop your requirements for UK taxes!
For this you need to go to the HMRC website and look at the Statutory Residence Test - to check whether you will be classed as resident or UK taxes, or not.
Its quite complicated and you need to be very careful and look at consulting a tax specialist, if you are unsure.
One of the biggest problems is that you mention a 6 month contract - if you are only away from the UK for this short time - then you might easily fall foul of the SRT.
Also startup costs are high in the UAE and if you want to rent an apartment or villa - then these are normally for 1 year contract.
Loads more pitfalls to your idea - but above are the first key ones to overcome
Cheers
Steve
 
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