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Being paid in AED in Dubai

Raptor
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Being paid in AED in Dubai

#186192

Postby Raptor » December 11th, 2018, 4:01 pm

A question from my daughter. She has been offered a job, working in the UK (Hotel), but the company is based in Dubai and would pay her in AED in a Dubai Bank. She would effectively be a UAE resident as the contract is Dubai based.What are the implications if she was to remortgage and what is the best way to get the money from Dubai to the UK (will cross post on Expat board for the last part).

I have only experience of working in France and USA, that was over 30 years ago so not able to offer advice.

Raptor.

gryffron
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Re: Being paid in AED in Dubai

#186323

Postby gryffron » December 12th, 2018, 10:27 am

A UK resident working in the UK and you claim she will be "UAE resident". I find that very hard to believe. If you could avoid UK tax just cos the contract/employer was offshore, then we'd all be doing it!

However to answer your question: For regular currency transfers you can't beat the online currency brokers. caxton/hifx/ukfx etc. Look for one that is FSA registered. Sometimes, they'll give you even better rates if you setup a regular transfer, as it allows them to forward plan/offset etc.

Gryff

BBLSP1
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Re: Being paid in AED in Dubai

#186359

Postby BBLSP1 » December 12th, 2018, 12:38 pm

On Residency, HMRC RDR3 (via Google) is the go to document. However, if you spend 183 days in the UK during the tax year you are automatically considered UK Resident.

Most foreign Employers would send your salary to a bank account in your home country or other nominated base. For example, I work for a European
based (non-UK!!) company and my salary is quoted in Euros. However, my duties are such that I never visit that country, and my salary is transferred to my UK bank and converted into GBP.

I know the UAE, like some of the other Gulf states, requires that employee salaries are paid into a local account. I presume this is why the employer cannot transfer the money directly to the UK. However, that restriction really applies to UAE Resident/ based staff. It is not clear to me how your daughter could open a UAE bank account not being based there. It seems a strange mix of employment contract and location. Why is your daughter not being employed by the UK part of the company who run the hotel - then the whole issue would go away? I would proceed carefully.

Raptor
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Re: Being paid in AED in Dubai

#186373

Postby Raptor » December 12th, 2018, 2:11 pm

Thanks. I was wondering the same thing. Will catch up with her tonight and question how the employee deals with its other UK employees. I did learn that she "may" have the opportunity to work and live there later (guess who will end up with the neurotic labrador!). I worked and lived abroad back in the late 70s and early 80's. My company paid salaries in both UK, France and US. Although I have worked in many other countries as a consultant it has never been a problem.

Raptor.

Raptor
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Re: Being paid in AED in Dubai

#186821

Postby Raptor » December 14th, 2018, 1:46 pm

Just to let you know. Now not a problem as she went to her VP and told her that she had been offered the job and they have agreed to pay her more to stay (not as much as she could have earned but she is happy with the salary and benefits, soon she will earning more than when I retired, chip of the old block there).

Raptor.


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