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Expatriate Employee Support Package

This Policy is only applicable to those seconded staff employed in the UCL Centre for Preparatory Studies (CPS), Kazakhstan

A. Expatriate Employees

1. Pay and Tax

Payment of salaries will be monthly, by bank transfer into an HSBC bank account in Kazakhstan, in sterling by the tenth day of the following month. The UCL salary scales will apply depending on job grade.

A non-pensionable Kazakhstan Supplement of 25% of basic monthly salary will be paid monthly to CPS employees for the period of employment in Kazakhstan.

Statutory deductions

Employees may be liable for both UK and Kazakhstan income tax on their earnings and benefits whilst employed by UCL, and working within the NU.  Benefits not otherwise taxable if they were secured in the UK are grossed up (e.g. air travel, relocation costs, insurance, etc.) so that individuals are not disadvantaged as a consequence of Kazakhstan taxation.

The current rate of personal income tax on salaries and benefits in Kazakhstan is 10%.

To qualify for non-resident tax status, a UK national will need to demonstrate the following:

  • That they hold a contract of full-time employment in an overseas location lasting at least a complete tax year (6 April – 5 April);
  • Visits to the UK do not exceed 182 days in a tax year;
  • Visits to the UK do not average 91 days or more in a tax year.

On production of evidence to the UK tax authorities of being non-resident in the UK, UK taxation of overseas earnings will not normally apply.  UK tax non-resident status ("NT status") is awarded solely by UK tax authorities (HMRC). UCL cannot apply NT status unless it has been informed by HMRC.  On taking up their appointment in Kazakhstan employees should complete a form notifying HMRC of their non-resident status in the UK. This will result in earnings being subject to Kazakhstan tax (personal income tax at source) only, subject to other tax obligations individuals may have in other tax jurisdictions. For employees who were UK tax resident immediately prior to taking up their appointment in Astana or in the preceding 52 weeks, UK National Insurance contributions (both employee and employer) will need to be paid for the employee's first 52 weeks of non-residence.  As a worst case position, the UK and Kazakhstan have a double taxation agreement arranged to ensure that total income tax deductions do not exceed your normal UK obligations.

The responsibility for maintaining non-resident status vests in individual employees, the consequences of failure being a personal liability to UK tax.  UCL is not responsible for meeting any of this potential tax liability and is not in a position to offer personal tax advice.

2.  Relocation Policy

UCL Kazakhstan Relocation policy applies (see appendix A).

This includes reasonable reimbursement of relocation expenses for self, a spouse and dependent children.

3. Flights

CPS employees recruited as Subject Co-ordinators and not resident in the UK may be flown to London, single economy class, to attend the UCL induction programme, at UCL's cost. 

UCL will also meet the flight costs of employees to Astana from their domicile at the time of recruitment, and flights back to their original domicile at the end of employment, and the flight costs of spouses and dependents who will be joining the employee on a permanent basis for the duration of the employment contract. Employees may request that the end of employment flight be to a destination other than to their original domicile. The cost of such a flight will be capped at the cost of a flight to their original domicile as advised by UCL's corporate travel agent and is subject to the agreement of UCL management.

In addition, UCL will pay an allowance to meet the cost (net of UK employment taxes, if applicable) of one economy class return flight to the 'home' of the employee and his/her spouse and dependents per full contract year1.  UCL will recoup the flight costs pro rata where the flights are taken early in the contract year in which the employee resigns. (The 'home' of the employee is the place declared at the start of the contract (after 01/04/2012), or, at which he/she has a permanent residence, or in the absence of this, the country from which the employee holds a passport containing the work visa).

Flight and visa costs for spouses / partners and dependents who visit the employee will not be paid.

Flights will be reimbursed to the value of the actual costs incurred as evidenced by receipts, e.g., if the cost of an Astana - home return flight is £450, and the deemed limit to that home for the academic year is £500, the reimbursement will be £450 only. UCL's Office for International Affairs will review the deemed limit annually at the beginning of each academic year. Individual limits will be notified to employees for their respective destinations, which will represent the cost of an off-peak economy ticket.

Partners who are both employed by UCL will each be entitled to the cost of one flight to the designated home of one of them, i.e. one flight per employee per year.  If an employee wishes to travel to a destination other than their home, then reimbursement of costs will be limited to the lower of the actual cost of an economy return flight to the destination and £750. This will be paid on production of an original receipt for the actual flight in compliance with the Expenses Regulations.

Please note that unpaid leave will result in the reduction of the above annual flight entitlements pro rata to the remainder of the contract year. UCL will recoup the flight costs pro rata to the remainder of the contract year1, where the flights are taken before the application for unpaid leave 2.

4. Accommodation costs

On their relocation to Astana, employees and their families will be provided with suitable accommodation free of charge by the NU.

5. Transport to / from work

Transport to and from work will be provided free of charge by NU for those living in NU accommodation.

6. Insurance

UCL provides insurance cover against accidental damage and theft for personal property located in the accommodation provided by NU. The theft must be reported to the police prior to making a claim.

Medical insurance

Access to general medical services for employees will be made available in Astana, by UCL and will provide medical insurance for the employee and dependents who have permanently relocated to Kazakhstan for the duration of the employment contract to cover accidents and emergency treatment.

Travel insurance

UCL will provide business travel insurance to and from Kazakhstan under UCL's travel insurance policy to include for personal accident, and loss/damage to belongings. The annual flight to your "home" from Astana and return are covered.

The policy covers:

  • Travel in Kazakhstan, business or pleasure.
  • Travel to the UK, business and pleasure in conjunction with a UCL business trip. The incidental element of the trip should not exceed the number of days of UCL business.

Please see the AIG Lifeline Plus Employee Travel Pack. The required Lifeline Plus policy number is 0015865159. . Full details of the policy are available on the Finance Division Web Pages. http://www.ucl.ac.uk/finance/secure/fin_acc/Prtravel.htm

Once the employee has touched down and collected their luggage (unless they have suffered delays or lost baggage) the insurance is no longer operative, the policy will not regard travels in their home country to be incidental to a business trip.

Employees should purchase insurance cover which includes medical insurance to cover the period until they embark on their return flight to Astana. In this regard UK staff may find this link useful http://www.duinsure.com/ in sourcing additional travel insurance. Your journey does not have to start in the UK.

Employees who are not UK citizens may use the following company who can issue individuals with policies from outside the UK, regardless of their citizenship https://www.worldnomads.com/ All insurance queries should, in the first instance, be directed to:

June Campbell, Insurance Manager, Finance Division, UCL, Gower Street, London WC1E 6BT
Tel: +44 20 3108 3059 (internal: 53059); email: june.campbell@ucl.ac.uk
http://www.ucl.ac.uk/finance/

7. School Fees

Employees whose children are attending school in Kazakhstan, and for whom school fees are being paid, are eligible to receive an annually determined allowance per school child. The allowance for the 2013/14 school year is up to 581,080 KZT paid with the employees' salary, on evidence of payment of fees, such evidence to comply with the Expenses Regulations.

8. Superannuation

Membership of the Universities Superannuation Scheme (USS), a UK-based pension fund, is encouraged.  Employer contributions are currently 16% and employee contributions are currently 6.5% for new joiners, or 7.5% for those in the final salary section.  Pension contributions and entitlements are calculated on basic salary (i.e. excluding other allowances).

B. External appointments (Kazakhstani Nationals)

1. Pay and Tax

Payment of salaries will be monthly, by bank transfer into an HSBC bank account in Kazakhstan, in sterling by the tenth day of the following month. The UCL salary scales will apply depending on job grade.

The Kazakhstan Supplement does not apply.

The current rate of personal income tax on salaries and benefits in Kazakhstan is 10%.

2.  Relocation Policy

The Relocation Policy (Appendix A) does not apply.

3 Flights

Not applicable.

4. Accommodation costs

Accommodation will not be provided by NU for Kazakhstani Nationals.

5. Transport to / from work

Not applicable.

C. External appointments (Non-Kazakhstan citizens already resident in Kazakhstan)

1. Pay and Tax

Payment of salaries will be monthly, by bank transfer into an HSBC bank account in Kazakhstan, in sterling by the tenth day of the following month. The UCL salary scales will apply depending on job grade.

A non-pensionable Kazakhstan Supplement of 25% of basic monthly salary will be paid monthly to CPS employees for the period of employment in Kazakhstan.

2.  Relocation Policy

UCL Kazakhstan Relocation policy applies (see appendix A).

This includes reasonable reimbursement of relocation expenses for self, a spouse and dependent children, limited to a maximum of £1,000.

3. Flights

CPS employees recruited as Subject Co-ordinators and not resident in the UK may be flown to London, single economy class, to attend the UCL induction programme, at UCL's cost. 

UCL will also meet the flight costs of employees to Astana from their domicile at the time of recruitment, and flights back to their original domicile at the end of employment, and the flight costs of spouses and dependents who will be joining the employee on a permanent basis for the duration of the employment contract. Employees may request that the end of employment flight be to a destination other than to their original domicile. The cost of such a flight will be capped at the cost of a flight to their original domicile as advised by UCL's corporate travel agent and is subject to the agreement of UCL management.

Dependents are restricted to children under the age of 18.

In addition, UCL will pay an allowance to meet the cost (net of UK employment taxes, if applicable) of one economy class return flight to the 'home' of the employee and his/her spouse and dependents per full contract year.  UCL will recoup the flight costs pro rata where the flights are taken early in the contract year in which the employee resigns. (The 'home' of the employee is the place declared at the start of the contract (after 01/04/2012), or, at which he/she has a permanent residence, or in the absence of this, the country from which the employee holds a passport containing the work visa).

Flight and visa costs for spouses / partners and dependents who visit the employee will not be paid.

Flights will be reimbursed to the value of the actual costs incurred as evidenced by receipts, e.g., if the cost of an Astana - home return flight is £450, and the deemed limit to that home for the academic year is £500, the reimbursement will be £450 only. UCL's Office for International Affairs will review the deemed limit annually at the beginning of each academic year. Individual limits will be notified to employees for their respective destinations, which will represent the cost of an off-peak economy ticket.

Partners who are both employed by UCL will each be entitled to the cost of one flight to the designated home of one of them, i.e. one flight per employee per year.  If an employee wishes to travel to a destination other than their home, then reimbursement of costs will be limited to the lower of the actual cost of an economy return flight to the destination and £750. This will be paid on production of a receipt for the actual flight in compliance with the Expenses Regulations.

Please note that unpaid leave will result in the reduction of the above annual flight entitlements pro rata to the remainder of the contract year. UCL will recoup the flight costs pro rata to the remainder of the contract year1, where the flights are taken before the application for unpaid leave 2.

4. Accommodation costs

On their relocation to Astana, employees and their families will be provided with suitable accommodation free of charge by the NU.

5. Transport to / from work

Transport to and from work will be provided free of charge by NU for those living in NU accommodation.

6. Insurance

UCL provides insurance cover against accidental damage and theft for personal property located in the accommodation provided by NU. The theft must be reported to the police prior to making a claim.

Medical insurance

Access to general medical services for employees will be made available in Astana by UCL and will provide medical insurance for the employee and dependents who have relocated to Kazakhstan for the duration of the employment contract, to cover accidents and emergency treatment.

Travel insurance

UCL will provide business travel insurance to and from Kazakhstan under UCL's travel insurance policy to include for personal accident, and loss/damage to belongings. The annual flight to your "home" from Astana and return are covered.

The policy covers:

  • Travel in Kazakhstan, business or pleasure.
  • Travel to the UK, business and pleasure in conjunction with a UCL business trip. The incidental element of the trip should not exceed the number of days of UCL business.

Please see the AIG Lifeline Plus Employee Travel Pack. The required Lifeline Plus policy number is 0015865159. . Full details of the policy are available on the Finance Division Web Pages. http://www.ucl.ac.uk/finance/secure/fin_acc/Prtravel.htm

Once the employee has touched down and collected their luggage (unless they have suffered delays or lost baggage) the insurance is no longer operative, the policy will not regard travels in their home country to be incidental to a business trip.

Employees should purchase insurance cover which includes medical insurance to cover the period until they embark on their return flight to Astana. In this regard UK staff may find this link useful http://www.duinsure.com/ in sourcing additional travel insurance. Your journey does not have to start in the UK.

Employees who are not UK citizens may use the following company who can issue individuals with policies from outside the UK, regardless of their citizenship https://www.worldnomads.com/

All insurance queries should, in the first instance, be directed to:
June Campbell, Insurance Manager, Finance Division, UCL, Gower Street,
London WC1E 6BT
Tel: +44 20 3108 3059 (internal: 53059); email: june.campbell@ucl.ac.uk
http://www.ucl.ac.uk/finance/

7. School Fees

Employees whose children are attending school in Kazakhstan, and for whom school fees are being paid, are eligible to receive an annually determined allowance per school child. The allowance for the 2011/12 school year is up to 581,080 KZT paid with the employees' salary, on evidence of payment of fees, such evidence to comply with the Expenses Regulations.

8. Superannuation

Membership of the Universities Superannuation Scheme (USS), a UK-based pension fund, is encouraged.  Employer contributions are currently 16% and employee contributions are currently 6.5% for new joiners, or 7.5% for those in the final salary section.  Pension contributions and entitlements are calculated on basic salary (i.e. excluding other allowances).

D. UCL Secondees (Short Term - up to 1 year) and Appointments of 1 year

1. Pay and Tax

Payment of salaries will be monthly, by bank transfer into an HSBC bank account in Kazakhstan, in sterling by the tenth day of the following month or into a UK bank account, at the determination of the Finance Director - International. The UCL salary scales will apply depending on job grade.

A non-pensionable Kazakhstan Supplement of 25% of basic monthly salary will be paid monthly to non-Kazakhstani CPS employees for the period of employment in Kazakhstan.

Statutory deductions

Employees may be liable for both UK and Kazakhstan income tax on their earnings and benefits whilst employed by UCL, and working within the NU1.  Benefits not otherwise taxable if they were secured in the UK are grossed up (e.g. air travel, relocation costs, insurance, etc.) so that individuals are not disadvantaged as a consequence of Kazakhstan taxation.

The current rate of personal income tax on salaries and benefits in Kazakhstan is 10%.

For secondments of 12 months to qualify for non-resident tax status, a UK national will need to demonstrate the following:

  • That they hold a contract of full-time employment in an overseas location lasting at least a complete tax year (6 April – 5 April);
  • Visits to the UK do not exceed 182 days in a tax year;

Visits to the UK do not average 91 days or more in a tax year. On production of evidence to the UK tax authorities of being non-resident in the UK, UK taxation of overseas earnings will not normally apply.  UK tax non-resident status ("NT status") is awarded solely by UK tax authorities (HMRC). UCL cannot apply NT status unless it has been informed by HMRC.  On taking up their appointment in Kazakhstan employees should complete a form notifying HMRC of their non-resident status in the UK. This will result in earnings being subject to Kazakhstan tax (personal income tax at source) only, subject to other tax obligations individuals may have in other tax jurisdictions. For employees who were UK tax resident immediately prior to taking up their appointment in Astana or in the preceding 52 weeks, UK National Insurance contributions (both employee and employer) will need to be paid for the employee's first 52 weeks of non-residence.  As a worst case position, the UK and Kazakhstan have a double taxation agreement arranged to ensure that total income tax deductions do not exceed your normal UK obligations.

The responsibility for maintaining non-resident status vests in individual employees, the consequences of failure being a personal liability to UK tax.  UCL is not responsible for meeting any of this potential tax liability and is not in a position to offer personal tax advice.

Relocation Expenses

The Relocation Policy is not applicable.

Settling-in Allowance

Employees will receive a lump sum settling-in allowance of £1,000, pro rata by full calendar month up to 1 year (net of UK income taxes, if applicable), payable in Astana after relocation, to purchase items required for daily living in Astana.

Personal Goods Transport Allowance

Employees will be entitled to receive full reimbursement of costs (net of taxes, if applicable) to pay both for the cost of transporting personal belongings to Astana and back to London at the end of employment, up to a maximum of £500 each way.

Employees intending to make use of this benefit are advised to obtain quotations from shipping agents for the transport of their goods prior to committing to shipping.

The allowance will be paid on approved claims for expenses supported by invoices or receipts. Any monies, in excess of the above limit, owed to UCL will be recovered from the employee's pay in the month following the payment of the invoices by UCL. The employee will be given prior written warning of the deduction.

Visa costs

The costs associated with applying for visas will be paid for employees, spouses and dependents who relocate for the duration of the employment contract.

The current costs of an annual multiple entry visa obtained from the Kazakhstan Consulate in London is £150. Visas for children up to the age of 16 are free of charge.

Currently the Republic of Kazakhstan does not recognise unmarried partners as legal family, and may therefore only issue visas for up to 120 days. UCL is not responsible for the issuing of visas.

2. Relocation policy

Not applicable.

3.  Flights

UCL will pay for an economy flight for the secondee only at the start and end of the secondment. UCL will also pay for economy flights at the start and end of the secondment for spouses / dependents who relocate to Astana for a minimum of one year.

UCL will pay for one economy class return, to the secondee's country of residence where the secondment is for a full year. UCL will also pay for one economy class return for spouses / dependents who relocate to Astana for a minimum of one year. No pro rata annual flight payments will be made. Employees may request that the end of employment flight be to a destination other than to their original domicile. The cost of such a flight will be capped at the cost of a flight to their original domicile as advised by UCL's corporate travel agent and is subject to the agreement of UCL management.

4. Accommodation costs

On their relocation to Astana, employees and their families will be provided with suitable accommodation free of charge by the NU.

5. Transport to / from work

Transport to and from work will be provided free of charge by NU for those living in NU accommodation.

6. Insurance

UCL provides insurance cover against accidental damage and theft for personal property located in the accommodation provided by NU. The theft must be reported to the police prior to making a claim.

Medical insurance

Access to general medical services for employees will be made available in Astana by UCL and will provide medical insurance for the employee and dependents who have relocated to Kazakhstan for the duration of the employment contract, to cover accidents and emergency treatment.

Travel insurance

UCL will provide business travel insurance to and from Kazakhstan under UCL's travel insurance policy to include for personal accident, and loss/damage to belongings. The annual flight to your "home" from Astana and return are covered.
The policy covers:

  • Travel in Kazakhstan, business or pleasure.
  • Travel to the UK, business and pleasure in conjunction with a UCL business trip. The incidental element of the trip should not exceed the number of days of UCL business.

Please see the AIG Lifeline Plus Employee Travel Pack. The required Lifeline Plus policy number is 0015865159. . Full details of the policy are available on the Finance Division Web Pages. http://www.ucl.ac.uk/finance/secure/fin_acc/Prtravel.htm

Once the employee has touched down and collected their luggage (unless they have suffered delays or lost baggage) the insurance is no longer operative, the policy will not regard travels in their home country to be incidental to a business trip.

Employees should purchase insurance cover which includes medical insurance to cover the period until they embark on their return flight to Astana. In this regard UK staff may find this link useful http://www.duinsure.com/ in sourcing additional travel insurance. Your journey does not have to start in the UK.

Employees who are not UK citizens may use the following company who can issue individuals with policies from outside the UK, regardless of their citizenship https://www.worldnomads.com/All insurance queries should, in the first instance, be directed to:

June Campbell, Insurance Manager, Finance Division, UCL, Gower Street,
London WC1E 6BT
Tel: +44 20 3108 3059 (internal: 53059); email: june.campbell@ucl.ac.uk
http://www.ucl.ac.uk/finance/


1 The contract year is the 12 month period from the anniversary of the employee's date of appointment.

2The annual flight reduction provision does not apply to paid leave granted in terms of the Leave for Domestic and Personal Reasons Policy.

 

HR Policy and Planning
June 2014