Using UK Account , but business not in uk

by **manan** on Fri Jan 13, 2012 5:01 pm

Hi ,

I want to ask whether I will be liable to pay tax in uk in following condition .

a) my brother does offshore development in India , he lives in India.

b) he bills clients in Canada / America .

c) Client's make payments to my account in UK ( For convenience purposes ) .

Now , do I need to pay tax in UK on the amount that is transferred to my account ?

by **AvocadoK** on Sat Jan 14, 2012 10:03 am

Hi,
Based on those simple facts, and assuming you are not in fact a partner in the business, there is no tax to pay.

However, I would want to put some safeguards in place, to avoid HMRC arguing that you are a partner. EG, a document to state that you are holding the account on behalf of your brother. And it would be important to show that any onward transfers are to your brother. If the reality is more complicated than that, then you need some in depth advice!

Regards
AK

by **manan** on Sun Jan 15, 2012 9:29 am

Thanks for the advice . Do I need to get a legal document in UK stating that I am not the partner ? or Should it be business incorporation document in India ? any ideas on that ?

by **AvocadoK** on Sun Jan 15, 2012 10:14 am

I suggest a legal document in the UK stating that you hold the account as trustee for your brother (i.e. that the money in the account does not belong to you, it belongs to your brother).

AK