| T O P I C R E V I E W |
| qznhln1 |
Posted - 19 August 2009 : 15:08:33
Working Abroad
I have been offered a 12 month contract in Saudi Arabia and was wondering if I am obliged to give the OR any details about this? |
| 13 L A T E S T R E P L I E S (Newest First) |
| daikon |
Posted - 01 September 2009 : 11:27:46
quote:
Originally posted by gettingoutofdebt
To be honest I am not sure how paying an IPA from abroad would work. The guideline amounts for food, clothes, etc. would go out of the window as each country has its' own cost of living. You may need to provide receipts to show the amount you are paying for food, how much clothing costs, etc., which could be quite messy.
As you are paid in a foreign currency then everything should remain in that currency i.e if you were given an IPA then the amount should be specified in the local currency and not converted to sterling as the exchange rate fluctuates on a daily basis.
I'm paying an IPA from Japan. The assessment was all in pounds sterling and I think they pretty much went by their usual guidelines. I think they could allow extras at their discretion (For example I have to pay some medical costs which I wouldn't in the UK).
If the exchange rate changes drastically, you can apply to vary the terms of the IPA, because effectively you circumstances have changed.
I didn't have to provide any receipts or anything like that. |
| Reviva UK |
Posted - 23 August 2009 : 19:17:20
Hi
UK bankruptcy doesn't necessarily effect people living abroad ( unless they have assets abroad ) and the restrictions are primarily directed at UK residency.
For example one can be a director or a foreign Ltd company PROVIDED that it doesn't trade within the Uk or with then UK.
Income & expenditure is also really quite different as there are certain things that have huge variations with the I&E for the UK.
Exchange Rates - variable
Utility costs - these can often be double because of air conditioning etc
Water - in hot countries water is often more than the petrol costs here per month.
Food - again in many countries fres fruit is flown in rather than grown locally
Medical expenses - taken for granted here but in the US could easily be £200 per month
Education - if you were taking children to Saudi while working there it is reasonable to assume that they are not fluent in arabic and therefore private school costs are normal.
The important thing it to have frank and open communication with the OR and discuss clearly the challenges locally. They will do research and with google it is not difficult to find the cost of living globally.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| gettingoutofdebt |
Posted - 20 August 2009 : 12:14:28
quote:
Originally posted by ExpatAlex
gettingoutofdebt - can you comment on the latter sentences please as you seem very knowledgeable. Also in terms of people paying IPAs from abroad outside of the EU. There are many awkward things to assess, like I do not pay my bills in GBP but the local currency. Also the exchange rate can fluctuate which was part cause on my issue with going BR as it left me trying to find another 25% of cash to pay my UK creditors.
To be honest I am not sure how paying an IPA from abroad would work. The guideline amounts for food, clothes, etc. would go out of the window as each country has its' own cost of living. You may need to provide receipts to show the amount you are paying for food, how much clothing costs, etc., which could be quite messy.
As you are paid in a foreign currency then everything should remain in that currency i.e if you were given an IPA then the amount should be specified in the local currency and not converted to sterling as the exchange rate fluctuates on a daily basis.
|
| ExpatAlex |
Posted - 20 August 2009 : 11:22:15
qznhln1 - getting it translated won't help much as they probably won't change it for you. The best way is to get in contact with an expat in the same company as you are joining, then check how it works with their contract (They should be similar as most contracts follow the local labour laws be it a private/goverment organisation - although beware that some companys/government departments can have the contract amendedto suit them).
Don't let it put you off working in KSA. I have heard of a lot of expats who have fun in the compounds. I can only assume that the OR might have a say in your DI earnings in Saudi. I am still to have my OR interview in a few weeks, so will post here if the OR decides I need an IPA to be paid from Abroad.
gettingoutofdebt - can you comment on the latter sentences please as you seem very knowledgeable. Also in terms of people paying IPAs from abroad outside of the EU. There are many awkward things to assess, like I do not pay my bills in GBP but the local currency. Also the exchange rate can fluctuate which was part cause on my issue with going BR as it left me trying to find another 25% of cash to pay my UK creditors. |
| qznhln1 |
Posted - 20 August 2009 : 10:49:23
Thanks for that
I take it there is no issue with my going on "holiday" to Saudi for the next 12 months and living there at a friend's expense? As long as over the next 3 years no money comes back from Saudi into my UK bank account |
| gettingoutofdebt |
Posted - 20 August 2009 : 10:38:22
If your debts prior to BR were all UK debts then there shouldn't be any reason for the Saudi authorities to get involved.
Whether the OR can find out about you having an account in Saudi will depend upon:
- You telling the OR you are going to be working in Saudi and submitting an new I&E
- The OR requesting pay statements, which may or may not show the pay going into a Saudi account
- If you are eligible for an IPA the OR may ask for your UK bank statements and when these don't show your pay being transferred from your employee but from your Saudi account instead.
I don't see working in Saudi a problem in any way but you should let the OR know and complete a new I&E if requested. If the OR asks whether you have a Saudi bank account then you can let them know. They won't have an interest in it as it was opened after you went BR but may want to know whether it has an OD facility, etc. |
| qznhln1 |
Posted - 20 August 2009 : 10:26:02
Thanks for that - I guess it's worth getting the Arabic version translated then!
Not wanting to get too far off the track but if the Saudi's have a different way of dealing with Bankrupts - i.e. chuck you in jail until you can find the money to repay your debts - then if you are made BR in the UK (with all your credit having been taken out in the UK) and you then travel out to Saudi can they then do this to you? |
| ExpatAlex |
Posted - 20 August 2009 : 10:01:52
qznhln1 - You should be wary of what your contract says. Although it will always be in favour of the Saudis. You will get two copies, one in English and one in Arabic. At the bottom of the English one it will say that the Arabic "version" of the contract prevails in any court judgement and the court will be in Saudi under Saudi Law!
The British Embassy cannot get involved unless you are beaten or something drastic/life threatening. Read the FCO.gov.uk website and you will find that Labour Disputes are common, also they can't bail you out with cash to leave.
"On a practical point, can the OR actually find out whether you have an account in Saudi?" - I would like to know that too!
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| qznhln1 |
Posted - 20 August 2009 : 09:54:48
I wasn't intending to take out any credit in Saudi - as ExpatAlex points out they make BR here look like a walk in the park! I've heard about people being picked up at the airport and chucked in jail for a couple of £s outstanding on a credit card
On a practical point, can the OR actually find out whether you have an account in Saudi? |
| ExpatAlex |
Posted - 20 August 2009 : 09:41:37
geetingoutofdebt - "You are also obliged to tell any creditors in Saudi that you are bankrupt in the UK."
Can you confirm this is the law in Saudi? I live in a another middle east country and doing that would make the bank block all credit, and block any money you have in your account to cover the debts you owe them. Then when your salary gets paid into your account they will take as much as they like to cover your debts with the bank. They do not care if you cannot pay the rent or food or any other bills.
I just went BR a few days ago and if I tell my bank, then the latter is what will happen. I have experience of this when I got made redundant by one of the companies out here.
Please can check on the latter advice? |
| gettingoutofdebt |
Posted - 19 August 2009 : 19:01:54
That's right. Bankruptcy in the UK is recognised worldwide and it can include debts from any country not just UK debts.
If you are undischarged then you will need to let the OR know your contact details in Saudi and they will ask you to complete an I&E to see if you are eligible for an IPA.
The same rules apply so if you have more than £99 DI then you will need to pay into an IPA. You are also obliged to tell any creditors in Saudi that you are bankrupt in the UK. |
| qznhln1 |
Posted - 19 August 2009 : 16:14:10
I am undischarged and haven't had an IPA put in place yet.
So are you saying that if I am staying outside the UK, not paying UK tax and not bringing any money back that the OR still can legally enforce that I provide them with my I&E? |
| gettingoutofdebt |
Posted - 19 August 2009 : 15:30:06
If you are undischarged then yes you will need to.
If you have been discharged but are paying into an IPA then you will need to and inform them about your I&E as your IPA will change.
If you have been discharged and don't pay into an IPA then you don't have to inform the OR. |
