Offshore bank accounts??
Discussion
Just wondering what you do when you have a few £ coming in, that for a few reasons you don't want the taxman to see.
I'm not meaning the stash a few million in the caymans type thing here,
this is much much much smaller.
I've know that a few high st banks have this facility and in truth for security this is what im looking at, but how legal or posible is this if you live in the UK? 'should' the money have been earned out of the EU? and can the taxman check on this?
If you don't want to post this type of info on a forum can you e-mail me, cheers.
I'm not meaning the stash a few million in the caymans type thing here,
this is much much much smaller. I've know that a few high st banks have this facility and in truth for security this is what im looking at, but how legal or posible is this if you live in the UK? 'should' the money have been earned out of the EU? and can the taxman check on this?
If you don't want to post this type of info on a forum can you e-mail me, cheers.
If you are "Resident" or "Ordinarily Resident" in the UK, you are liable to UK tax on all your worldwide income - including on interest received on bank accounts. The "foreign" income is taxed in the UK whether the money is brought(remitted) into the UK or not. Some foreign income may also be taxed in the foreign country in which it arises. If so, you could end up paying two lots of tax on the one item of income. However, most countries have Double Taxation Agreements (DTAs) with the UK which means that you are given credit in the UK for the foreign tax you may have already paid. if you are a UK resident, you are legally obliged to divulge the sources and amounts of ALL your income (UK or Foreign). If you fail to notify the UK tax authorities of foreign income, you are comitting tax evasion, which is a criminal offence.
>> Edited by eric mc on Friday 29th August 08:18
>> Edited by eric mc on Friday 29th August 08:18
What you need is an offshore holding company, which owns your company, that way you can dividend money out to your holding company and out of the country....
Also a foreign credit card on the holding company so you can then spend the said cash, but the best way to do anything with the cash that taken out of the country in this way is for the offshore company to purchase property etc, and build it up as an investment for the future.
all imho of course and i would never do anything like this myself
>> Edited by dontlift on Friday 29th August 08:52
Also a foreign credit card on the holding company so you can then spend the said cash, but the best way to do anything with the cash that taken out of the country in this way is for the offshore company to purchase property etc, and build it up as an investment for the future.
all imho of course and i would never do anything like this myself
>> Edited by dontlift on Friday 29th August 08:52
Getting the money out of the company and into your own pocket is where the UK tax man would want his chunk. There is no LEGAL escape.
However, if you personally leave the UK and become an offshore resident, you may be able to move your foreign income onto the "remittance" basis or even escape UK tax altogether. However, that is a bit drastic and you have to very aware of dates spent in the UK etc. Ask Mick Jagger.
However, if you personally leave the UK and become an offshore resident, you may be able to move your foreign income onto the "remittance" basis or even escape UK tax altogether. However, that is a bit drastic and you have to very aware of dates spent in the UK etc. Ask Mick Jagger.
eric mc said:
Currency doesn't matter. Income does not even have to be in any currency to be taxable.
I meant in the scenario that one is working offshore (or appears to be) and paying into a dollar pound account you can pay in in dollars and draw in pounds.
They are very useful in certain scenarios.
Lived on the Isle of Man for 8 years.
From memory if you invoice through an offshore company and the cash is paid into that offshore company's bank account then you only pay the country's tax.
Any cash then coming into this country is taxable at this country's tax rate - but the rules may have changed so suggest that you talk to a bank or accountant where you are thinking of holding an account.
From memory if you invoice through an offshore company and the cash is paid into that offshore company's bank account then you only pay the country's tax.
Any cash then coming into this country is taxable at this country's tax rate - but the rules may have changed so suggest that you talk to a bank or accountant where you are thinking of holding an account.
I'm currently working in Belgium through a company registered in Malta with a bank account in the Isle of Man invoicing a client in Holland!
This has the unique advantage of offering complete transparency by getting as many national authorities involved as possible
Company income is usually taxed according to the rules of the country where the company is registered regardless of where the work is carried out or where the person carrying out the work is tax resident.
Personal income is taxed according to the rules of the country where you are tax resident at the time the income is drawn from the company regardless of what country the income was earned in.
Unless you’re planning on doing something dodgy I don’t really see off shore bank accounts offering any advantages as long as you are tax resident in the UK. If you’re going to be working offshore for a few years but intend to come back to the UK at some point then take professional advice because there are a lot of (legal) things that can be done to improve your tax efficiency which may or may not include offshore bank accounts. HTH
This has the unique advantage of offering complete transparency by getting as many national authorities involved as possible
Company income is usually taxed according to the rules of the country where the company is registered regardless of where the work is carried out or where the person carrying out the work is tax resident.
Personal income is taxed according to the rules of the country where you are tax resident at the time the income is drawn from the company regardless of what country the income was earned in.
Unless you’re planning on doing something dodgy I don’t really see off shore bank accounts offering any advantages as long as you are tax resident in the UK. If you’re going to be working offshore for a few years but intend to come back to the UK at some point then take professional advice because there are a lot of (legal) things that can be done to improve your tax efficiency which may or may not include offshore bank accounts. HTH
t1grm said:
Scenario also depends on how the money you are gaining offshore is acquired, i.e. if its earning as opposed to a capital gain...
Mmmmm. Belgium.
Size Nine Elm, please elaborate
With double taxation, if you have paid tax in the country you are resident in, then you don't have to pay UK tax.
Most European countries have similar (or worse) taxes than the UK, for income and capital...
except Belgium, which has no capital gains tax.
So if you know you are going to make a substantial capital gain, a full tax year in Belgium can be a useful break, since there is a double taxation treaty, and you will have paid all applicable taxes locally.
Size Nine Elm said:
Size Nine Elm said:
Scenario also depends on how the money you are gaining offshore is acquired, i.e. if its earning as opposed to a capital gain...
Mmmmm. Belgium.
Size Nine Elm, please elaborate
With double taxation, if you have paid tax in the country you are resident in, then you don't have to pay UK tax.
Most European countries have similar (or worse) taxes than the UK, for income and capital...
except Belgium, which has no capital gains tax.
So if you know you are going to make a substantial capital gain, a full tax year in Belgium can be a useful break, since there is a double taxation treaty, and you will have paid all applicable taxes locally.
F me! I'm going to be in Belgium for the next year. So from what you're saying and with the housing market in the UK South East peaking as it is, now's the time to off-load those two buy to lets I've got in Brighton? And I pay no CGT Right? Result! I better get registered with the Belgium Authorities and get myself a local accountant.
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