About the Package
The post is offered on an initial two year fixed term contract but with the potential for further extension upon mutual agreement and depending on requirements. Start dates can be negotiated within reason, with the successful applicant. Shorter contracts may be negotiated for the right person, but terms will vary from what is detailed below so please ask for more detail. Bullet point benefits offered for a 2 year contract are:
- Basic salary ranges from £44,415 to £66,675 per annum depending on qualifications and experience
- Eligibility for a taxable 25% gratuity of basic salary earned over the period of appointment, payable at the end of the contract
- Airfares for the post holder (and qualifying dependents) at the beginning and end of contract, as well as mid-contract return flights or allowance
- A relocation grant
- Favourable income tax rates.
Annual Leave:
You will receive 30 days per year as annual leave as well as 9 public and 2 Government holidays as they which fall each year.
Relocation Grant:
If you are to travel alone to the Islands from within Europe you will be entitled to a relocation grant of £2,000. This is to assist with getting to the airport for your flight, shipping costs (if relevant) and any other expenses incurred by relocating to the Islands.
If you are to be accompanied by your spouse/partner you will be entitled to £500 more (total of £2,500) and this amount will be increased by £100 in respect of each dependent child who accompanies you.
If you are being recruited from outside Europe however, this amount may vary so please check with the Recruitment Officer.
We usually pay 50% of this relocation grant on signing of the contract and 50% on arrival in the Islands to assist with setting up bank accounts and so on.
Accommodation:
Suitable accommodation for your circumstances will be sourced and a rent will be charged each month (deducted from salary). Rental charges range from approximately £300 per month for a small bed-sit to approximately £850 per month four bedroom house. These rental charges are reviewed annually. Accommodation is usually provided with white goods (fridge freezer and washing machine - £24 per month), hard furnishings and most other essential household items for the duration of a contract. It should be noted however that the standard and rent prices of Government properties varies considerably and the number of properties available is also limited.
Property Service Charge:
There is an annual service charge on domestic properties to cover the cost of the provision of water and refuse collection. This charge is currently fixed at £35.50 per month and is reviewed annually.
Utilities:
Current rates are shown below and are subject to change:
Petrol - 1.19p per litre
Diesel - 69p per litre } Delivery charge 1p per litre
Kerosene (white)- 68p per litre }
Propane Gas- 45kg cylinder £106.20
Propane Gas- 11kg cylinder £ 25.96
Electricity - 22 pence per unit
Education Allowance:
Up to a maximum of £8,200 per annum (£2,733 per term) per child
In order to be eligible for this allowance you must be accompanied by your spouse for the whole period of employment.
If you are widowed, divorced, separated or single, you may be eligible to receive this allowance providing you have:-
a)judicial custody of the child or children to whom the claim applies; and
b)financial responsibility for the child or children; and
c)exclusive care and control over the child or children.
Flights:
The successful applicant and those accompanying them (if applicable) will receive a flight paid for at the beginning and end of the contract to/ from the country they were recruited from. They will also receive another return flight (or equivalent allowance to allow travel elsewhere) mid-contract (so after around 1 years’ service) on a two year contract.
Medical Care Charges:
Overseas staff will have access to the Falklands health services. Most services including prescriptions are currently free to residents of the Falkland Islands. However charges are made for some items and the Service reserves the right to alter the charges for medical services. At present charges are made for spectacles, dentures and cosmetic dentistry such as crowns and bridges. The charges are variable based on the cost of the materials including freight. A contribution of £300 is also payable for any referral for medical treatment in the UK or Chile.
Taxation:
This tax information is for guidance only and may alter during the period of a contract.
Income Tax
The Falkland Islands (FI) tax year runs 1 Jan to 31 Dec. Husband and wife are taxed independently.
There is no self-assessment; individuals are required to complete a tax return.
The Personal Allowance (PA) is £14,000 for 2013 and increases to £15,000 for 2014. You may not be entitled to the full PA, please see ‘Residency for Income Tax Purposes’.
Individuals are taxed at the following rates, after taking into account allowable deductions:
For 2013 and 2014:first £12,000 @ 21%
remainder@ 26%
Medical Services Tax (MST)
MST is applied through the same system as Income Tax. There is a separate guide available on MST.
MST is due on all earnings from employment, including benefits in kind, and self-employed earnings, the 2013 and 2014 rates are:
Employee1.0%
Employer 1.5%
Self-employed1.5%
MST is not applied to the below income:
Bounties (FIDF, Fire & Police)
All income of anyone under 17 years old
Pensions
Family allowance
Savings & investments
Grants, welfare payments, reimbursements & employment expenses (conditions apply)
For the tax year 2013 there is no threshold for MST, it is applied to the first £1.
A yearly allowable deduction of £15,000 has been introduced with effect from 1 January 2014 however. You may not be entitled to the full deduction, only individuals who are resident and/or ordinarily resident for tax purposes are entitled to the full deduction. There is also a further provision for entitlement for individuals who turn 17 during the tax year.
Employee Taxation
There is a system of withholding sums (POAT - Payments on Account of Tax) from employee remuneration by employers. These are set out in detail in the Payments on Account of Tax (Employees Deductions) Regulations.
Non-residents should have Income Tax deducted at a straight 21%, they can claim any PA entitlement in their individual tax return.
Resident individuals should have Income Tax deductions made according to the monthly/weekly tax tables which take into account the PA.
An additional monthly/weekly tax deduction of 1% MST is also applied to your gross earnings. From 2014, for tax resident individuals, the MST deduction will be made according to the monthly/weekly tax tables which take into account the yearly allowable deduction.
There is taxation of benefits-in-kind; these are set out in detail in The Taxes (Benefits in Kind) Rules. There is a separate guide available on Benefits In Kind.
Income Tax and Employee MST is assessed on any benefits in kind received from your employer at the same time your income tax return is assessed.
Please note any contractual entitlements do not override the taxes legislation e.g. a benefit in kind/allowance provided as per your contract does not make it exempt from tax. It is your responsibility to check the tax treatment with the Taxation Office.
Residency for Income Tax Purposes
An individual’s entitlement to allowances/deductions and chargeable income depends on their residency position for tax purposes (please note that this differs to residency for immigration purposes).
Resident – present in FI for a total of 183 days or more during the relevant tax year.
Ordinarily resident – repeatedly resident in FI except for a temporary absence (not exceeding 2 complete tax years)
Individuals resident and/or ordinarily resident for tax purposes are assessed on their worldwide income, are entitled to the full PA, relief for Retirement Pension Contributions (RPCs) and may claim a deduction for certain pension/retirement benefit schemes (a copy of the relevant policy documents and proof of premium payments are required in order to consider if the scheme is allowable under FI taxes legislation), allowable subscriptions and charitable donations.
Credit will normally be given for foreign taxes either unilaterally or through the one Double Taxation Agreement, with the UK. Proof of foreign tax paid will be required.
Individuals who are neither resident nor ordinarily resident are assessed on income from within FI and/or for duties performed in the FI and are entitled to a proportion of the PA according to the number of days they were present in the FI during the relevant tax year.
The only reliefs allowable are for compulsory RPCs and charitable donations.
Taxation Examples:
The amount of tax that would be charged on an individual FI tax resident (present 183 days or more in the tax year) with an annual salary of £32,000, no other taxable income and a full year’s RPC payments is as follows:
Tax Year 2013
Income Tax CalculationWorldwide income 32,000
Personal Allowance 14,000
RPCs 754
Net chargeable income £17,246
12,000 @ 21% = 2,520
5,246 @ 26% = 1,364
£ 3,884
MST Calculation 32,000 @ 1% = £ 320
Total Due Income Tax 3,884
MST 320
£ 4,204
Tax Year 2014
Income Tax CalculationWorldwide income 32,000
Personal Allowance 15,000
RPCs 754
Net chargeable income £16,246
12,000 @ 21% = 2,520
4,246 @ 26% = 1,104
£ 3,624
MST Calculation Earnings 32,000
Yearly allowable deduction15,000
17,000
17,000 @ 1% = £ 170
Total Due Income Tax 3,624
MST 170
£ 3,794
The Taxation Office holds guides available by email, post or collection. If you have any questions on taxation please contact or visit their office.
FIG Taxation Office, St Mary’s Walk, Stanley, Falkland Islands, FIQQ 1ZZ
Telephone No. (+500) 28470 Fax No. (+500) 27287 E-mail:
Retirement Pension Scheme:
Employees are required to pay weekly contributions which are currently set at £14.50 per week. Contribution rates may alter during the period of the contract. Contributions are compulsory and will be deducted from salary each month.
'Under the terms of Falkland Islands law there is no facility for refunds of contributions to be made, under any circumstances, however a partial pension can be paid at retirement age provided an individual makes 250 weekly contributions to the scheme. If your period of residence in the Falklands is less than 5 years you can, if you so wish, make voluntary payments to the scheme from anywhere in the world in order to achieve 250 contributions. This is a state operated pension scheme, it is not recognised in the UK and likewise UK National Insurance is not recognised in the Falklands. Further information can be obtained from theSenior Accounting Assistant, The Treasury, Stanley. Telephone Number (+500) 28416 Fax No. (+500) 27144 E-mail:'