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A member has asked about the implications of changing over to a contract where they are paid out of Singapore (rather than the UK).

What are the implications for the employees for this? Would it mean they have to pay Singapore tax, what would the advantages/disadvantages for the Company and the Employees for doing this. Would it mean paying Singapore tax rather than UK or do you still have to pay UK and offset what you pay in Singapore.

I can see that one saving would be no more Employers National Insurance. However also means Employee not paying NI and therefore no credit towards Benefits or Pension.

Not familiar with any of the above so looking for input to those more in the know Smile
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However also means Employee not paying NI and therefore no credit towards Benefits or Pension.

Not too clued up on benefits but why be worried about the state pension. As it stands just now the new pension system that is on its way means you get £140 a week regardless of contributions. But stand by I recon that will eventually be means tested and most guys in this game will not get it. I may be wrong. As for the Tax side your accountant can answer that. I have never been happy paying UK tax as it is waist-ed on all the wrong things. I ask nothing from my government and expect nothing in return. Private medical , Private pension and save for a rainy day.
Confused
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my big pal at DOF has said they are changin the UK bods oer to a Singers contract



he asked whit the tax implications wur but a cannae advise him as av never been oan a singers contract


just wondered- will they/anyone still be PAYE

-or -

get a big tax bill at the end o the financial year (if nae claimin SED) to pay up

he said the wording is somethin like the employee appears to have "sole responsibility for tax"

interestin ken........any mair thots boys? who kens?
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Another thing to keep in mind............ If there are discrepances or lawsuits involved , then you will have a fight on your hands as Singas is pretty well clued up on it , Especially if the contract is in a different name than the company that is employing you...Beware !
Put ya brain in gear before ye open thy gob !
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rayshields wrote:
A member has asked about the implications of changing over to a contract where they are paid out of Singapore (rather than the UK).

What are the implications for the employees for this? Would it mean they have to pay Singapore tax, what would the advantages/disadvantages for the Company and the Employees for doing this. Would it mean paying Singapore tax rather than UK or do you still have to pay UK and offset what you pay in Singapore.

I can see that one saving would be no more Employers National Insurance. However also means Employee not paying NI and therefore no credit towards Benefits or Pension.

Not familiar with any of the above so looking for input to those more in the know Smile


I believe this link can help you with all queries with regards to Singapore Tax Law

http://www.iras.gov.sg/irasHome/page01.aspx?id=88
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rayshields wrote:
A member has asked about the implications of changing over to a contract where they are paid out of Singapore (rather than the UK).

What are the implications for the employees for this? Would it mean they have to pay Singapore tax, what would the advantages/disadvantages for the Company and the Employees for doing this. Would it mean paying Singapore tax rather than UK or do you still have to pay UK and offset what you pay in Singapore.

I can see that one saving would be no more Employers National Insurance. However also means Employee not paying NI and therefore no credit towards Benefits or Pension.

Not familiar with any of the above so looking for input to those more in the know Smile



The main factors here before deciding on where tax is paid are:

1. Where the work is being carried out
2. The tax residency status of the employee
3. The residency of the employer
4. If working aboard a vessel, where the vessel is registered and the residency of the company that owns the vessel.
5. Whether there is a current tax treaty in place between the resident country of the employer and the resident country of the employee.

Once these facts are established a more informed view can be made.
Kind Regards
Steve White


Your Tax Office Ltd
+44 (0) 1438 940 944
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Currently working with a Singapore contract, living in the UK.

We were given the choice of going UK PAYE, still getting taxed at sourced and paying minimal Nat Insurance.

Or Straight pay, no tax unless depending on where you are working.

I chose the PAYE version as it means if I don't qualify for the SED, I then don't have to come up with a years worth of tax. Plus, if I do qualify it is a nice bonus.
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mctintin wrote:
Currently working with a Singapore contract, living in the UK.

We were given the choice of going UK PAYE, still getting taxed at sourced and paying minimal Nat Insurance.

Or Straight pay, no tax unless depending on where you are working.

I chose the PAYE version as it means if I don't qualify for the SED, I then don't have to come up with a years worth of tax. Plus, if I do qualify it is a nice bonus.


The PAYE is like the most prudent option. However, the second option could be more beneficial depending on where you are working. Maybe it would be worth considering the second option but putting aside the potential PAYE tax just in case ?
Kind Regards
Steve White


Your Tax Office Ltd
+44 (0) 1438 940 944

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