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limited company double taxation benefit

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    limited company double taxation benefit

    Hi
    I got a email saying the below. Do you see this genuine?
    - You will be an employee of our UK Organization.
    - You will be paid salary by our UK company with PAYE deducting taxes.
    - You also become an employee of our Indian counterpart and get paid salary in the UK plus Per Diem as living expenses which can be paid up to £250 maximum tax free.
    - Tax will be deducted in India @ 10% on gross salary so no further tax liability remains in the UK according to the Double Taxation Treaty between UK-IND.
    - All Global consulting companies who sends their employees to UK, follow the same route of paying per diem rather than all in salary to save taxes as employee benefit.
    - We adopt the same method which is proven and used by HMRC.
    - You get TAX Form 16 for the earnings you make in India, which is equivalent to P60 in the UK.
    - As there is a treaty between India and UK for single taxation you can declare all your Indian income on your self assessment attaching Form 16, HMRC will credit your tax and you will be liable for no further tax as it is already being paid.
    - At the end of the financial year you would be receiving P60 and Form 16

    #2
    Sounds like Blatant tax avoidance to me.

    Comment


      #3
      Originally posted by united View Post
      Hi
      I got a email saying the below. Do you see this genuine?
      - You will be an employee of our UK Organization.
      - You will be paid salary by our UK company with PAYE deducting taxes.
      - You also become an employee of our Indian counterpart and get paid salary in the UK plus Per Diem as living expenses which can be paid up to £250 maximum tax free.
      - Tax will be deducted in India @ 10% on gross salary so no further tax liability remains in the UK according to the Double Taxation Treaty between UK-IND.
      - All Global consulting companies who sends their employees to UK, follow the same route of paying per diem rather than all in salary to save taxes as employee benefit.
      - We adopt the same method which is proven and used by HMRC.
      - You get TAX Form 16 for the earnings you make in India, which is equivalent to P60 in the UK.
      - As there is a treaty between India and UK for single taxation you can declare all your Indian income on your self assessment attaching Form 16, HMRC will credit your tax and you will be liable for no further tax as it is already being paid.
      - At the end of the financial year you would be receiving P60 and Form 16
      I've got an Air Guitar for sale, £4,000 bargain, please send the money.

      The DTA does not mean you can pick or choose the lowest tax regime, and fundamentally, TAX IS DUE WHERE THE WORK IS DONE.

      Comment


        #4
        Originally posted by united View Post
        Hi
        I got a email saying the below. Do you see this genuine?
        - You will be an employee of our UK Organization.
        - You will be paid salary by our UK company with PAYE deducting taxes.
        - You also become an employee of our Indian counterpart and get paid salary in the UK plus Per Diem as living expenses which can be paid up to £250 maximum tax free.
        - Tax will be deducted in India @ 10% on gross salary so no further tax liability remains in the UK according to the Double Taxation Treaty between UK-IND.
        - All Global consulting companies who sends their employees to UK, follow the same route of paying per diem rather than all in salary to save taxes as employee benefit.
        - We adopt the same method which is proven and used by HMRC.
        - You get TAX Form 16 for the earnings you make in India, which is equivalent to P60 in the UK.
        - As there is a treaty between India and UK for single taxation you can declare all your Indian income on your self assessment attaching Form 16, HMRC will credit your tax and you will be liable for no further tax as it is already being paid.
        - At the end of the financial year you would be receiving P60 and Form 16
        Sounds well "pukka"
        The Chunt of Chunts.

        Comment


          #5
          FTFY

          Originally posted by stek View Post
          TAX IS DUE WHERE THE WORK IS DONE apart from if you are talking about corporation tax paid by large Indian outsourcers.
          The Chunt of Chunts.

          Comment


            #6
            Originally posted by MrMarkyMark View Post
            FTFY
            Only for ICT's!!

            Comment


              #7
              Originally posted by stek View Post
              Only for ICT's!!
              Great way to export GDP
              The Chunt of Chunts.

              Comment


                #8
                Oh Dear

                Originally posted by united View Post
                Hi
                I got a email saying the below. Do you see this genuine?
                - You will be an employee of our UK Organization.
                - You will be paid salary by our UK company with PAYE deducting taxes.
                - You also become an employee of our Indian counterpart and get paid salary in the UK plus Per Diem as living expenses which can be paid up to £250 maximum tax free.
                - Tax will be deducted in India @ 10% on gross salary so no further tax liability remains in the UK according to the Double Taxation Treaty between UK-IND.
                - All Global consulting companies who sends their employees to UK, follow the same route of paying per diem rather than all in salary to save taxes as employee benefit.
                - We adopt the same method which is proven and used by HMRC.
                - You get TAX Form 16 for the earnings you make in India, which is equivalent to P60 in the UK.
                - As there is a treaty between India and UK for single taxation you can declare all your Indian income on your self assessment attaching Form 16, HMRC will credit your tax and you will be liable for no further tax as it is already being paid.
                - At the end of the financial year you would be receiving P60 and Form 16

                Comment


                  #9
                  No mention of it being QC Approved. Because of that I am out

                  Not sure it's 100% relevant due to the convoluted setup you've mentioned but have a look at this.

                  The Truth behind 'Approved' Umbrella Companies | Contractor Umbrella

                  Plenty of other guides along the same lines that might be a closer fit to your situation but still, food for thought.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    May work, note may, for a non dom, especially if domicile D in India to start with.

                    But it's not mainstream.

                    Comment

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