Non resident and offshore

[windowlicka]

Hi all

I think I have the following facts straight but wanted to check with wiser heads here -

As a non UK resident you can legally set up an offshore company and be paid gross from a UK employer with no UK tax liability

Any funds then moved into the UK are liable for tax (any idea how much?)

Any funds moved onshore to your country of residence are liable for their local taxes (around 10% in this case)

To retain NR status your limit is 91 days in the UK in a given tax year

Has anyone done this that can confirm/offer advice?

cheers
W.

[pzz76077]

I wouldn't consider paying as much as 10% tax. What Junta are you resident in for gods sake??

Generally, if you are working in the UK you are liable for UK tax. Best bet is to not work in the UK is you don't want to pay UK tax.

There are an increasing number of people being stopped at UK airports and being held in custody until they have paid the tax that they owe before they are allowed to go home.


PZZ

[tim123]

Hi all

I think I have the following facts straight but wanted to check with wiser heads here -

As a non UK resident you can legally set up an offshore company and be paid gross from a UK employer with no UK tax liability

Any funds then moved into the UK are liable for tax (any idea how much?)

Any funds moved onshore to your country of residence are liable for their local taxes (around 10% in this case)

To retain NR status your limit is 91 days in the UK in a given tax year

Has anyone done this that can confirm/offer advice?

cheers
W.

No.

1) As a non resident, any money earned legitimately from an overseas source is not taxable in the UK whether you move it to the UK or not.

2) Any money earned whilst physically present in the UK is potentially liable to UK tax whatever your residency status. Though HMRC will usually not bother to follow this up if the same money is being taxed in another country where you are resident.

Attempting to turn funds of type2 into type 1, by using an offshore company, will not work (if they find out)

HTH

tim

[windowlicka]

Thanks for replies I think maybe I should expand a little -

Im currently permie in London but the missus wants to spend some time at home which is South Korea. Now I am happy to relocate but dont want to give up my current job if poss, one reason is because I like it and the second is because my skillset is not required in SK so little chance of working there.
So I will be a legit non res but will also be coming back three or four times a year to work from london office. How I was hoping to sell it to my company is that I switch from perm to contract and when Im in the Uk they pay me going daily rate and when Im in SK working remotely they pay me 50% of that rate (I think this is a pretty good deal for them) and I can afford to do that if Im paying SK tax of approx 10%.
Many grey areas here it seems but if Im having to split tax between UK and SK then its probably not worth taking on extra expense and hassle of offshore company by the sounds of it.

cheers
W.

[xchaotic]

Im currently permie in London...when Im in the Uk they pay me going daily rate and when Im in SK working remotely they pay me 50%

Good luck with that, to be honest if I were your manager I'd just let you go and hire someone else.
Personally I tried to make this work for myself - sit in some warm, Mediterranean place and send emails all day.
But the truth is if a job can be done remotely, it will be eventually, but in Bangalore and for 10% of 'the going daily rate', which is still better than Korea with regards to the time difference, so you can actually call someone during the working hours.

[windowlicka]

Thanks Xchaotic

Bangalore has its uses I agree but they are limited and wont ever be a threat to me luckily.

Yes they could replace me in London for sure however this would be neither quick, cheap or easy. So this kinda brings me back to my original point - what can I expect my overheads to be and in return how low can I price myself in order to make them think - hell at that rate we may as well give it a go!! Im not looking for any financial gain, I can even wear a net loss if it means I can keep 'er indoors happy!!

cheers
W

[Plonker]

Hi

My understanding of the non domiciled resident status is that monies earned offshore are not taxable in the UK unless those monies are remitted to the UK.

Example 1
ie Offshore bank account has two account, 1 x capital and 1 x interest.

If the interest was remitted to the UK, then it would be taxable.

Example 2
Offshore Trust (monies earned offshore)

If these earnings were remitted to the UK, then these earnings would also be taxed.

Please correct me if I am wrong. Offshore earnings are taxable when they are remitted.

[Moscow Mule]

If you incorporate in SK, and can prove that the company is administered from there - even whilst you are in the UK - then you might have a chance.

As soon as you become resident in the UK, or the UK tax authority think you are running your company from the UK, yourco will become liable for UK tax - which would be a bummer.

However, you might find the $40k capital requirement a bit hard to bear...

http://www.healyconsultants.com/comp...rmation22.html

I'd take some professional advice if I were you...

Edit: this has nothing to do with your UK personal tax status. That's a different matter again.