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Avoiding Tax on Payments into UK for a Foreign Company

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Hi there, I wonder if anyone can help me with this quite specific knowledge.

I work in the UK as the sole employee of a company ordinarily based in Russia. The company has no tax status or anything here, I work as a self-employed person paying my own tax on my earnings.

Recently however we've signed a deal with a new company who will NOT pay into any of our listed territories we have accounts, Russia, British Virgin Islands OR Latvia.

Is there any way of us receiving the payments in the UK and transferring them into our main accounts abroad without paying UK income tax? The sales don't exclusively come from the UK (although some do).

Thanks in advance

Comments

  • It depends on your status, not the status of the company.

    If you are UK resident, ordinary resident and domicile, then all of your income, reguardless of where it arrises, which bank account it is in or which country it is in will be liable to UK tax. This is known as the arrising basis of taxation.

    If you are UK resident but not a UK domicile and not ordinary resident in the UK, then you can choose between paying tax on the arrising basis or on the remittance basis but there are many rules involved.

    HMRC have guidance on this issue here http://www.hmrc.gov.uk/cnr/hmrc6.pdf
  • It sounds as if you are also a permanent establishment of the Russian company requiring you to file UK corporate tax returns as well.
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