Reply to: Drip feeding money earned abroad into UK account

[BlasterBates]

My advice on this Alan, is use an accountant, make sure you satisfy non-residency, and inform the taxman. It covers you and if your legit, the accountant will fend off HMRC, should they enquire, and at least that way it would just be that an enquiry from lowly qualified official rather than a highly trained ex SAS police investigator, who's pay depends on prosecuting as many people as possible.

Always remember the normal HMRC officials are judged on how many tax returns they process, and they just make sure they're correct. The investigators are judged on how many people they stick behind bars.

[expat]

Can't I just earn the money and decide what tax position to take in a few months when it all becomes more clear?

No, not really. Your tax position depends on matters of fact, such as where you are resident. It is not you who gets do decide things like that: there are rules for the tax office to use in deciding whether your are resident in the UK or not.

Most of these "matters of fact" are not choices that you can make by declaring them so, although they may be things that you can vary by your actions. So you can't just decide later that you weren't resident at the time. Either you were or you weren't.

Edit: I do sympathise with people with a strong urge not to give HMG any more to squander/thieve, but there is IMHO a higher principle that the govt does set and spend taxes, and the way to change that is at the ballot box, not by breaking the laws of a democracy. The way to pay less tax to the UK govt is to elect a different one, or genuinely leave the country.

[wantacontract]

use the cash to buy gold....

although gold is high in price already.....

transfer some money to family member that you can trust?

If i ever contracted abroad, i think i would wire money to my dad in asia, and then have it transferred to my bro in law, and then back to me.....

hehehe, bugger handing money back to uk government, they would only go prop up sodding banks..and MP's expenses....

[expat]

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 don't want to evade tax, declare your income to the tax man and pay the tax due on it. That will securely avoid any suspicion from the tax man.

OTOH if you do want to evade tax, that would be a criminal offence, and you would be lying to us in order to make us accessories to the crime, so in that hypothetical case you could **** off.

[dozer]

EKK!

did you miss the 'recommend' part? ie have used these people before etc?

any chance to jump on the lmgtfy bandwagon.....

[Fred Bloggs]

..

[scooterscot]

who can recommend a formation company in the channel islands?

EKK!

[dozer]

who can recommend a formation company in the channel islands?

[AlanDavis]

Have an offshore account with a visa card. Put all extra spending e.g. bling, boystoys, nights out, on that i.e. not your normal spends like rent/mortage, Tescos, etc.

Not that I know anything about it.

Like buy a car with it?!

[AlanDavis]

This is a complete one off and never contracted before - only doing it to bridge gap of being made redundant and finding a new job...I was thinking of opening an account with a local islamic bank...

I'm uncertain about how long it will be but I would want to get into a normal UK job asap...its this uncertainly that is driving various answers from those who i have asked...

Can't I just earn the money and decide what tax position to take in a few months when it all becomes more clear?

[ASB]

Have an offshore account with a visa card. Put all extra spending e.g. bling, boystoys, nights out, on that i.e. not your normal spends like rent/mortage, Tescos, etc.

Not that I know anything about it.

Best to make sure it's not a bank with a UK banking license issuing the card and holding the account though.

[HairyArsedBloke]

Have an offshore account with a visa card. Put all extra spending e.g. bling, boystoys, nights out, on that i.e. not your normal spends like rent/mortage, Tescos, etc.

Not that I know anything about it.

[scooterscot]

Ask Lord cash point (Michael Abraham Levy) he knows one or two things about setting up off-shore accounts. Or even Mr Goodwin..

I agree with ASB, an off-shore managed company in the channel islands, virgin islands, would be the best way to go. As long as company income and personnel income is clearly distinguished, you've operated (what's that term??) "Within the rules" (don't look at me governor I've done nothing wrong).

[Pickle2]

Just bring it back into the country in cash and spend it slowly in lieu of going to the cashpoint.

Why piss around with putting it in a UK bank account at all? Assuming its not a six figure sum, surely its not worth the hassle.

[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.