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Tax free salary

 
forum comment
#0 Tax free salary
 
Boozer
10.12.8 00:00
 
Hi allI currently earn a tax free salary of about 86k. Of course, with the free house, bills, car, etc etc, it is worth much more than that, but even at 86k It's the equivalent of earning over 130k in the UK pre tax. My question concerns what to write on future applications when they ask me my previous salary? Obviously 86k tax free plus benefits is a lot better than 86k pre tax, but my salary is 86k at the end of the day. On the other hand, I would be looking at jobs of at least 130k in order to maintain my current level of savings. What could I/should I write?Thanks All
 
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#0 RE: Tax free salary
 
Cynic
10.12.8 00:00
 
This is amazing. How can you earn so much, yet seemingly have such a lack of self-leadership and initiative (no offence intended). I guess you're a teacher or something! LOL.Why not just say "I currently have a total remuneration package worth £130K. This consists of an £86K tax free salary, free house, bills car, etc".Or even better, why not just tell them "I'm looking for a package of at least £130K. Either hire me at that level or don't. End of."
 
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#0 RE: Tax free salary
 
zey
10.12.8 00:00
 
Just put 86k as your current salary, but follow it with "(on tax-free basis)". Presumably you're in Dubai an that will be obvious from your application. Future employers will be familiar with the idea that you need to match your take-home salary regardless of the tax regime you happen to be working within.
 
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#0 RE: Tax free salary
 
Anon
10.12.8 00:00
 
People are familiar with the idea that you accept a lower nominal salary when going into a tax-free country on the basis that you can still receive a pay hike. This benefits both employer and employee and both can be upfront about it. Similarly, when you move from a tax-free country to one where you will neeed to sacrifice pay to NI, etc., it's an open understanding that you'll be looking for a correspondingly higher salary. You may not get the full 130k because there's an argument that market conditions (i.e. competing candidates) do not require it. Similarly, you sacrifice some salary in a taxed country to pay for healthcare, infrastructure, security, etc. that you wouldn't be getting in the tax-free country.
 
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#0 RE: RE: Tax free salary
 
Expat
10.12.8 00:00
 
It is no more complicated than being open about things.In my experience, expats returning to the UK, and especially those paying little or no tax, can end up taking a cut in overall benefits including take-home pay. This is because the premium received for the equivalent role overseas is effectively reversed when coming back (especially the tax part). This effect may be exaggerated now due to the economic environment with EM salaries based in boom times but UK/US now grounded in todays circumstances.
 
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#0 RE: RE: RE: Tax free salary
 
roger
10.12.8 00:00
 
it is irrelevant what you earn in a tax free environment. You will be judged on your skills etc. Depends where you are also. Dubai is tax free but very expensive - everything has to be paid for somehow. Also with the GBP weakening against other currencies of late, it may be that your salary was not as high as that when you moved out but the real gain has been due to currency fluctuation. My advice would be to be honest. You earned X, you are looking for a realistic market rate.
 
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#0 RE: RE: Tax free salary
 
Boozer
12.12.8 00:00
 
Cynic are you HIGH? "I guess you're a teacher or something!" Which stratosphere are you currently floating in to make a guess like that, and why would you share it with us?
 
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#0 RE: RE: RE: Tax free salary
 
sit still
12.12.8 00:00
 
Firms won't care if you're coming from a tax-free environment, you fit in to their pay structure or they take one of the many people out there who will. Generations of expats have taken a hit when returning home, your timing would seem to leave you particularly exposed. Stay where you are for a couple of years, then come back and buy a nice house at the bottom of the market and you can afford to take less of a salary.
 
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forum comment
#0 RE: Tax free salary
 
Ex-Expat
15.12.8 00:00
 
Boozer, as others have said you will be offered a salary appropriate to your role and experience. If you are asked about your salary you should simply state the facts: 86K basic tax-free, plus bonus and benefits. Don't expect people to translate this to a gross salary of 130K, though. In my experience, people's basic salary in Dubai (assuming that's where you are) is broadly equivalent to their basic salary in the UK. Of course, you can state that you have salary expectations of 130K, but don't expect to be offered that unless it's in line with what the market will bear.
 
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forum comment
#0 RE: Tax free salary
 
miles
05.02.9 00:00
 
Hi BoozerJust out of interest which company and where are you working. And why are you looking to leave. Hope you don't mind
 
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forum comment
#0 RE: Tax free salary
 
boblet
06.02.9 00:00
 
from friends' experiences, I would say that when you have been lured abroad by the perks which make it worthwhile (it's the money people usually go for), you can't necessarily assume that the pay level will stick on your return.I've known 2 people have to take pay cuts in order to move 'home'. Equally, they could boost their pay back up by moving out again.If moving to UAE was their dream, they wouldn't have needed to be offered so much to go in the first place.
 
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