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Desert dividend

13 March 2012
Issue: 4345 / Categories: Forum & Feedback
A contractor who carries on his business for an agency via a limited company has found work in Saudi Arabia for a period of 18 months, including a complete tax year

Early last year our client (Mr A) set up a limited company (B Ltd) to carry out work through an agency which has paid B Ltd gross. We do not believe that the IR35 or disguised remuneration rules apply here.

In January 2012 the agency found work for our client abroad and since then he has been working via B Ltd in Saudi Arabia and this will last until the end of March 2012.

It now appears that there is every possibility that the work in Saudi Arabia will continue for a further 18 months from April 2012 until say September 2013.

Naturally Mr A would like to return home every so often and we would expect that he will spend about eight weeks in the UK during the tax year 2012/13.

Our queries are as follows. First if...

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