Overseas Income
Discussion
My son is starting a new job. He works remotely from the UK and is paid gross in USD each month into his Wise USD account. It’s a full-time exclusive role for an overseas company. I’m unsure of it’s jurisdiction until I see the contract.
What’s the best way for him to set himself up to minimise his tax obligation?
What’s the best way for him to set himself up to minimise his tax obligation?
Phil. said:
What’s the best way for him to set himself up to minimise his tax obligation?
Tell him to be careful with that strategy.
There is a privileged, privately educated, knighted politician, who is associated with a group who hate any suspected 'tax dodging' with overseas income. In fact, they appear to hate anyone who becomes succesful.
Dewi 2 said:
Phil. said:
What’s the best way for him to set himself up to minimise his tax obligation?
Tell him to be careful with that strategy.
There is a privileged, privately educated, knighted politician, who is associated with a group who hate any suspected 'tax dodging' with overseas income. In fact, they appear to hate anyone who becomes succesful.
Absolute minefield and he 100% needs professional advice.
As a general rule it's very hard to avoid paying full UK tax on employment income that is brought into the UK and that should be his baseline. He will quite likely have to work quite hard to show that he is not liable for tax in the jurisdiction that the money is coming from - is there a dual taxation treaty in place? - and also he needs to establish his employment status.
Frankly the fact that he is being paid gross and isn't being given professional support from the overseas company would be ringing alarm bells to me. Are you able to disclose the nature of the work?
But back to my first point. This could get very complex very quickly and retaining the services of a specialist international tax accountant will be a lot easier and less stress than trying to explain to HMRC and a foreign tax authority why you've not been paying the correct tax.
As a general rule it's very hard to avoid paying full UK tax on employment income that is brought into the UK and that should be his baseline. He will quite likely have to work quite hard to show that he is not liable for tax in the jurisdiction that the money is coming from - is there a dual taxation treaty in place? - and also he needs to establish his employment status.
Frankly the fact that he is being paid gross and isn't being given professional support from the overseas company would be ringing alarm bells to me. Are you able to disclose the nature of the work?
But back to my first point. This could get very complex very quickly and retaining the services of a specialist international tax accountant will be a lot easier and less stress than trying to explain to HMRC and a foreign tax authority why you've not been paying the correct tax.
Phil. said:
It’s a small tech startup with employees across the world. I’ll expect to have sight of the contract in the next day or so and then ask more questions.
That's something that needs to be established. Payments made gross from overseas through a money transfer service would, on the surface, suggest otherwise.100% agree with Deckster. I worked outside the UK and qualified for NT status, but the rules have changed since.
Professional advice is vital, and it's niche advice - not mainstream accounting / PAYE.
Best to get the advice to moderate expectations, rather than try to reverse engineer things later.
I am new to the forum so don't know if you can DM, but if you can't find an expert I can hook you up with who helped me.
Professional advice is vital, and it's niche advice - not mainstream accounting / PAYE.
Best to get the advice to moderate expectations, rather than try to reverse engineer things later.
I am new to the forum so don't know if you can DM, but if you can't find an expert I can hook you up with who helped me.
Eric Mc said:
I used to act as the UK PAYE agent for an American company that sold medical equipment in the UK. They had a small number of UK based sales agents and that is how their salaries were administered. All legit and above board.
Just curious - Would the American company need to have a PAYE reference and/or be set up as a company within the UK? Also AFAICS it would make sense for all payments to be sterling rather than USDCountdown said:
Eric Mc said:
I used to act as the UK PAYE agent for an American company that sold medical equipment in the UK. They had a small number of UK based sales agents and that is how their salaries were administered. All legit and above board.
Just curious - Would the American company need to have a PAYE reference and/or be set up as a company within the UK? Also AFAICS it would make sense for all payments to be sterling rather than USDEric Mc said:
Countdown said:
Eric Mc said:
I used to act as the UK PAYE agent for an American company that sold medical equipment in the UK. They had a small number of UK based sales agents and that is how their salaries were administered. All legit and above board.
Just curious - Would the American company need to have a PAYE reference and/or be set up as a company within the UK? Also AFAICS it would make sense for all payments to be sterling rather than USDPhil. said:
Dewi 2 said:
Phil. said:
What’s the best way for him to set himself up to minimise his tax obligation?
Tell him to be careful with that strategy.
There is a privileged, privately educated, knighted politician, who is associated with a group who hate any suspected 'tax dodging' with overseas income. In fact, they appear to hate anyone who becomes succesful.
Please do not take my post too seriously Phil.
I was just hinting at the hypocrisy (or envy), shown by a particular group of people.
They are the same group, who use every opportunity to 'take a swing' at giant international businesses, accusing them of tax dodging.
They seem to forget, that it is Parliament themselves who write tax legislation, so can hardly blame others when legitimate tax saving methods are being used. Everyone has a duty to pay the taxes required of them, but businesses also have a responsibility to their owners, not to pay more than is legally required.
No doubt those same people gladly use their own tax free Personal Allowances, but never call that tax dodging.
Not a great deal of difference really. Simply features of tax legislation.
Good that you are looking into this matter in advance. Many people would not do that and might then have regrets later.
The recent FX change will have been a benefit to your son. Good for him.
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