Drip feeding money earned abroad into UK account

[AlanDavis]

I plan to earn some money working abroad in the middle east - something very short term - maybe only one month. Rather than go through all the tax issues, can I just be paid into a middle east account and drip feed about 1000 pounds a month into a UK account to avoid any suspicion from the tax man? Not wishing to avoid or evade tax, but my situation is so short term, I wanted to get this over and done with without jumping through hoops...

[TykeMerc]

That would be criminal tax evasion.

[TheFaQQer]

can I just be paid into a middle east account and drip feed about 1000 pounds a month into a UK account to avoid any suspicion from the tax man?

Well, you can. Whether it will avoid any suspicion is a completely different matter (that no-one on here can answer with any degree of knowledge) - if you do get caught, though, there's always a chance that you can get done for tax evasion and / or fraud.

Not wishing to avoid or evade tax, but my situation is so short term, I wanted to get this over and done with without jumping through hoops...

No, of course you aren't. That's why you are suggesting that it might "avoid any suspicion from the tax man".

If that were true, then you'd realize that there aren't any hoops to jump through - you declare the income, you pay the tax. Or you evade the tax that you know you should be paying.

[max]

I plan to earn some money working abroad in the middle east - something very short term - maybe only one month. Rather than go through all the tax issues, can I just be paid into a middle east account and drip feed about 1000 pounds a month into a UK account to avoid any suspicion from the tax man? Not wishing to avoid or evade tax, but my situation is so short term, I wanted to get this over and done with without jumping through hoops...

If you are not in the UK for 183 days...then no tax to pay. Go on a holiday.

[AlanDavis]

If you are not in the UK for 183 days...then no tax to pay. Go on a holiday.

Is that only for the first year? or is that for one year out of a maximum of 4 where the average must be not to be in the UK for over 90 days or something?

[SantaClaus]

Wonder if you can spend it all out there before you arrive back in UK.
Maybe buy the missus that nice diamond ring.

Just a thought and I dont know if it's legal or not.

[ASB]

1) Incorporate a company in an appropriate tax haven. Possibly Guernsey since I think they have now abandoned their "fee based" CT system
2) Bill Middle Eastern entity from there
3) Pay yourself a salary of 1,000 pound per month which you declare on your SA form and pay tax (but possibly not NI) on.

Remaining funds are only taxable in the UK when paid to you as a salary or dividends or whatever.

But it is absolutely essential that the company is not seen as managed from the UK - which is likely OK whilst you are in the Middle East. If it is managed from the UK then the taxman can decide that the company is UK resident and it is assessed to CT on its income.

The key thing is to recognise the difference between your income - i.e. that which is paid to you from the company, and the companys income.

Also, it is worth scrutinising the DTA between the UK and wherever you happen to be very carefully. There are some DTA's which determine that if the income is within the host countries tax system - even if taxed at 0% - this income is then not taxed in the UK.

You can almost certainly exploit your specific circumstances to your advantage tax wise, however given the fairly limited sums probably at stake it is likely the cost of proper advice and the structures required to be put in place will outweigh any savings.

In any event you are always at the mercy of investigation and seeing if the arrangements really hold up. The tax man has much deeper pockets than you for persuing this.

[Brussels Slumdog]

One months cheating

I plan to earn some money working abroad in the middle east - something very short term - maybe only one month. Rather than go through all the tax issues, can I just be paid into a middle east account and drip feed about 1000 pounds a month into a UK account to avoid any suspicion from the tax man? Not wishing to avoid or evade tax, but my situation is so short term, I wanted to get this over and done with without jumping through hoops...

Bill the company through a payroll company. Open a middle eastern bank account with debit card. Use the debit card to go shopping in the UK or
better still use it while on holiday.Don't transfer the money to a UK account.

[AlanDavis]

Thanks for the advice - especially the last two posters.

My contract may be as short as 2 weeks or as long as 6 months - I really don't know (its how things work in the middle east - I hope I even get paid...the paperwork has taken so long to arrange and it's not even final!)

Can I open an offshore company and bill the client through that company easily? Could I get this sorted in the next few days? It seems a lot of hassle for something that could only last a couple of weeks...

[Brussels Slumdog]

The paper work hassle for 2 weeks

Thanks for the advice - especially the last two posters.

My contract may be as short as 2 weeks or as long as 6 months - I really don't know (its how things work in the middle east - I hope I even get paid...the paperwork has taken so long to arrange and it's not even final!)

Can I open an offshore company and bill the client through that company easily? Could I get this sorted in the next few days? It seems a lot of hassle for something that could only last a couple of weeks...

Is this something that you regularly do, or it this just a once off?
Who will you be billing, a UK agency or the client direct?
Most UK agencies don't accept being billed by an offshore company like Jersey. Ask your agency how other contractors bill them in the Middle east.
Setting up an offshore company seems a lot of hassle for 2 weeks but 6 month is different. The ideal situation would be to sign a contract for 1 month with option to renew.