Tax on money paid by foreign company into an offshore accoun

[PA JO MA]

Hi,

I was wondering if someone could help me.

I live and work in the UK as an insurance broker. One of my clients asked me to investigate the possibility of sourcing insurance for a risk not normally covered by UK insurance companies. I managed to source an insurance company based in New Zealand and a deal was struck for which I will receive a commission payable by the New Zealand insurer.

My question is, if I were to set up a bank account offshore and had those commissions paid into that account rather than my normal UK business account, would I still need to declare those earnings for tax purposes? Am i right in the assumption that until the monies enter the UK, they are not taxable?

Also, if I am correct in my assumption above and that they are not taxable until the money enters the UK then I have a further question. Would it be possible to let the money in that account accumulate over a number of years and then in effect, lend the money to myself to purchase a house and repay into that account a few pounds per month as repayment for the loan? Would this be a way of avoiding tax?

I know VAT will not be an issue as earnings on this type of work is exempt.

Am I on dangerous ground here? Any advice on the best way to manage this income would be greatly appreciated. I know that I will likely need the advice of a specialist but some initial guidance will really assist.

Thanks in advance.

[PA JO MA]

I've just noticed that there is an international section of the forum and it appears I have posted in the wrong section.

I am new to the site so I apologise.

[maxking]

If you are resident you should pay tax on your world wide income.

If you are resident but not domiciled then an offshore structure can be useful.

In any case you need to get a good tax advisor to consult you on this.