I want to pay tax twice!

[dariog]

I am a UK citizen working full time overseas in Far East Asia. I am paying full taxes in my new country of residence. I am not required to pay any tax or NI in the UK.

I want to set up a limited company in the UK and send my already fully taxed overseas income to my UK company, don't worry I am not mad, I will explain why....

I can not get a mortgage in the UK as non resident, I want to pay NI for my government pension contributions, I want access to the NHS and I want to make use of my ISA allowance.

With my money going through the limited company, I can pay myself a small salary in the UK, including a small tax and NI contribution (a small price to pay I feel). After company expenses I expect to pay zero corporation tax.

So guys, your advice please, is this crazy or not?

[northernladuk]

If you are looking for a quick response you might be better asking on accounting web or speaking to a UK accountant. This forum is really just contractors discussing accounting stuff. A couple of friendly accountants might post if you are lucky.

[Jessica@WhiteFieldTax]

There are rules about where income is taxed - search double taxation agreements - and rules about liability and entitlement to pay NI. Unless you are inside those rules you cannot engineer these circumstances.

You need to take proper paid advice from an experienced accountant, and talk specifics rather than generality in an Internet fourm. Relevant issues will be time out of uk, ties to uk whilst gone, structure in host country, nature of residence in host country.

@nluk the prevailing attitude on Aweb would flame OP to a cinder

[northernladuk]

@nluk the prevailing attitude on Aweb would flame OP to a cinder

They would? I never thought that would be the case. Immigration boards would ban him and number would chew him up and spit him out alive. Looks like we are the soft touch nowadays

[diseasex]

Worst idea EVER. I don't even know where to begin. It makes no sense finacially.

[dariog]

Thanks for the advice guys. I will research this further with my accountant.

Possible or not, right or wrong, legal or illegal, this does make financial sense, thats not even up for debate. A small NI contribution for NHS access, instead of paying for global medical insurance is just one of many reasons.

[stek]

If you live abroad for more than three months you don’t automatically qualify for NHS treatment.

[northernladuk]

I can't see it making financial sense if it's wrong or illegal TBH.

[ASB]

You may find that it is not the payment of ni which is the enabler of the benefits you wish to obtain.

I personally am not particularly enthusiatic about the idea that cheating the public purse is ok. It is just stealing from everybody.

if you can maintain residence, engineered of otherwise, such as you do qualify that is fair enough.

you might be able to improve your pension entitlements cheaply with voluntary contributions.

[Scruff]

You can make voluntary NI payments in order to maintain your rights to UK state pension, but to put them through a Ltd company is odd?