Offshore payments and Ltd contract question

[andyo]

I'll be contracting for a US company soon, being paid in US dollars. I'm a uk resident and that will unlikely change, however I will expect to be travelling around Europe more for both business and pleasure.

US agent gave the impression they weren't too bothered where and how they paid me.

I'd like to pay my UK company 75% with 25% going offshore. The 25% would be to a personal account, this would cover any expenditure in Europe.
The 75% would exchange from dollars to pounds and the 25% from dollars to euros.

From a uk tax point of view the 25% doesn't enter the country at all, It will sit in euroland for work and holidays.

Sounds okay or not ?

The only problem I can think of is I may have to produce a personal invoice for the offshore element, or maybe what I should have done is a contract for services with an offshore Ltd and then transferred from there ? Contract for service is currently with my uk Ltd.

[captainham]

Does this really warrant a serious reply??!!

[andyo]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

[Wanderer]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

Will you live and work in the UK? If so, you have to declare your worldwide income and pay tax on it.

If a UK resident was being paid into an offshore account and spending that money while abroad then they are engaging in tax evasion and will land in a lot of trouble if they get caught.

[Andy Hallett]

Honestly, get some proper advice.

I know SJD has an international offering these days. For the sake of your sanity, stay on the right side of the HMRC and IRS.

[istvan]

Sounds like 25% tax evasion . Talk with a tax accountant. 25% in jail is too much

[jmo21]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

I don't believe your accountant said that. I believe you massively misunderstood whatever he did say.

[BlasterBates]

If that income arises as a result of your contracting in the UK it is taxable. Even if you´re working for a US company, because you will be doing this in the UK then this will be UK taxable income.

Where the money is, is irrelevant.

[andyo]

Honestly, get some proper advice.

I know SJD has an international offering these days. For the sake of your sanity, stay on the right side of the HMRC and IRS.

I'm all for paying my share of taxes, being 100% legal, etc, etc. But on the other hand there's nothing wrong with exploring options. I've been contracting a long time and I've looked into a few schemes in the past, I'm interested in how they work but at the end of the day I don't want an investigation.

[captainham]

I'm all for paying my share of taxes, being 100% legal, etc, etc. But on the other hand there's nothing wrong with exploring options. I've been contracting a long time and I've looked into a few schemes in the past, I'm interested in how they work but at the end of the day I don't want an investigation.

Take a look at EBTs and offshore trusts, I hear they're all the rage these days and I reckon they'll be right up your street.

Or Cyprus, possibly some options there.