Reducing taxation on foreign-earned income?

**malvolio** · 22 September 2006, 11:03

"Ask an accountant that does know", would be an obvious answer - SJD, 1stAccountancy or Nixon Williams would be a start. You need someone who specialises in UK tax law for small businesses, which is a nightmare

The other problem is that if you live here, you get taxed on all your UK income at UK rates, irresepective of where it comes from, so options are limited. You should have settled offshore...

**triboix** · 22 September 2006, 11:19

Originally posted by IanWorthington@usa.net

Hi.

I'm a long-term contractor, but have always worked outside of the UK until now and know little about IR35 etc.

I've now returned to the UK and am working from home on a contract basis for a Canadian company and some other work for a US company. At the moment I'm keping all the income in an offshore acount ánd not landing any but I'm sure that's not going to be enough.

The accountants I've spoken to don't know much, if anything, about what I can do legally to minimise my taxation on earnings from foreign corporations, apart from leaving the country again of course

Can anyone give me, or point me at, anything that might help me understand what options there are, and what questions I should ask accountants to make sure I'm not being taken for a ride?

Thanks,

ian

Move to the isle of man if you can (I am not kidding!)

**BrilloPad** · 22 September 2006, 11:49

Have you tried Montpelier?

Originally posted by triboix

Move to the isle of man if you can (I am not kidding!)

All the advantages of the IOM without moving there.

**malvolio** · 22 September 2006, 11:56

Originally posted by andrew_neil_uk

All the advantages of the IOM without moving there.

Who? That lot in Warrington perhaps? Can't check them out, the website is down...

But there are a dozen ways to manage money offshore - which is fine until you want to go to Tesco...

**BrilloPad** · 22 September 2006, 12:28

main location is IOM

Originally posted by malvolio

Who? That lot in Warrington perhaps? Can't check them out, the website is down...

But there are a dozen ways to manage money offshore - which is fine until you want to go to Tesco...

One of their UK arms is based in Warrington - but main location is IOM. The web site says little - only way to find out more is to attend a presentation. I have used them for 6 months and think they are brilliant - I earn so much more. HM Treasury is desperate to close them down - but due to clever structing it will be EXTREMELY difficult.

I just love it when the taxman gets what is coming to them - particularly as my ex works for them.

**malvolio** · 22 September 2006, 12:43

Originally posted by andrew_neil_uk

One of their UK arms is based in Warrington - but main location is IOM. The web site says little - only way to find out more is to attend a presentation. I have used them for 6 months and think they are brilliant - I earn so much more. HM Treasury is desperate to close them down - but due to clever structing it will be EXTREMELY difficult.

I just love it when the taxman gets what is coming to them - particularly as my ex works for them.

No problems, Hector will merely introduce a new rule at the next budget that makes it inadvisable fo UK citizens to use offshore banking structures if they turnover less than £1m or something, backdate it to December 2004, then ask you for the missing back tax, with interest. I suggest you keep it handy somewhere...

**IanW** · 22 September 2006, 12:47

Originally posted by andrew_neil_uk

All the advantages of the IOM without moving there.

I guess that's "Montpelier" you're referring to? Have you got a link to them -- google returns quite a few possibilities.

Thanks.

i

**ASB** · 22 September 2006, 12:49

Ian,

A lot can depend upon whether you are UK domiciled. Check it out on HMCR website. There are circumstances when it is possible to be taxed on a remittance basis rather than mondiale.

However it might not be easy to convince an inspector that the income is not generated in the UK.

It's a difficuly subject and the answers will be specfic to your exact circumstances.

**BrilloPad** · 22 September 2006, 14:25

Originally posted by malvolio

No problems, Hector will merely introduce a new rule at the next budget that makes it inadvisable fo UK citizens to use offshore banking structures if they turnover less than £1m or something, backdate it to December 2004, then ask you for the missing back tax, with interest. I suggest you keep it handy somewhere...

Alas due to new European laws they cannot backdate. Hurrah for Europe! Its a complex area - but MTM are very well prepared.

Reducing taxation on foreign-earned income?