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Where Taxpayers and Advisers Meet

is this a remittance?

david@deansca.co.uk
Posts:23
Joined:Wed Aug 06, 2008 3:15 pm
is this a remittance?

Postby david@deansca.co.uk » Wed Dec 16, 2009 1:17 pm

Hi

An offshore employer re-imbursed a non-dom for work expenses incurred in the UK. The expenses are paid from a uk bank account and the employer pays into the uk account - all duties are undertaken outwith the uk

is this a remittance?

Thanks for any help

David

maths
Posts:8230
Joined:Wed Aug 06, 2008 3:25 pm

Re: is this a remittance?

Postby maths » Wed Dec 16, 2009 1:21 pm

Yes.

david@deansca.co.uk
Posts:23
Joined:Wed Aug 06, 2008 3:15 pm

Re: is this a remittance?

Postby david@deansca.co.uk » Wed Dec 16, 2009 1:34 pm

Hi Maths

Thanks for the very quick reply

David

maths
Posts:8230
Joined:Wed Aug 06, 2008 3:25 pm

Re: is this a remittance?

Postby maths » Wed Dec 16, 2009 2:02 pm

If you provide more specific detail i can be a little more helpful hopefully!

david@deansca.co.uk
Posts:23
Joined:Wed Aug 06, 2008 3:15 pm

Re: is this a remittance?

Postby david@deansca.co.uk » Wed Dec 16, 2009 4:19 pm

Hi Maths

Some more info for you

person arrived in uk 27/7/07 from new zealand - hmrc have given ruling on domicile - treated as non dom
bought house here using offshore mortgage, spent 248 days in uk in 2008/9 other days abroad for work - employed by offshore employer, all employment expenses met from uk account are re-imbursed by employer. Employer re-imburses to offshore $ account in IOM - this account also gets the salary. the salary and expenses amount to £90k. this account had £50k in it on 5/4/08 and £35k in it on 5/4/09

from this IOM account, amounts are transferred to offshore account 2 to meet mortgage payments £19k and then funds are remitted to uk bank account to meet uk living expenses £66k etc. This account had £4k at 5/4/08 and £44k at 5/4/09

the problem I have is identifying what is a remittance

thanks

david

maths
Posts:8230
Joined:Wed Aug 06, 2008 3:25 pm

Re: is this a remittance?

Postby maths » Wed Dec 16, 2009 6:58 pm

David

This is complex and I think anything i say may be misleading rather than helpful.

I say this because the answers depend upon, inter alia, the residence/ordinary residence status of employee; date mortgage taken out; whether capital repayments are made; whether offshore accounts contain employment income only or other offshore income; whether it is an interest bearing account; whether UK duties performed under employment contract; whether they are incidental" or not; in respect of what the expenses are incurred; whether salary paid in £; etc.

Other conributors may disagree.

Sorry.

david@deansca.co.uk
Posts:23
Joined:Wed Aug 06, 2008 3:15 pm

Re: is this a remittance?

Postby david@deansca.co.uk » Thu Dec 17, 2009 9:39 am

Hi Maths

Do you offer consultancy services on this?

If so, please email your contact details

Thanks

David

Taxbar
Posts:1187
Joined:Wed Aug 06, 2008 2:19 pm

Re: is this a remittance?

Postby Taxbar » Thu Dec 17, 2009 1:43 pm

Dave,

The situation you describe is as Maths says, confused.

Do you not carry out some duties of your employment in the UK? HMRC are unlikely to believe that you do not.

Are you connected by ownership or control with the Offshore Employer?

I suspect you need an apportionment of income between UK and Offshore..

Do you have a Contract of Employment?

It looks like you have made in my view remittances from a mixed account that are taxable in the UK?

This needs restructuring or you will end up compounding your tax liabilities here in the UK.

Daniel Feingold
Senior Partner
STTP & CO.
info@stratax.co.uk


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