Moving UK accounts abroad

LillythePink

Voyager2002 wrote: »

I never heard of such a thing happening.

Do remember that the protection against bank failure (up to 50,000 pounds) does not apply to accounts held in offshore bank branches.

The IOM and CI have their own arrangements so you shouldn't worry.

Having an offshore account has its benefits and shouldn't mean that you can't carry on your current ccs

chattychappy

baggyg wrote: »

Regarding Tax I am still actually employed by a UK firm being paid into a UK account so I guess I am liable for UK tax.

No, not necessarily. In fact I (as a UK company) employed someone to work overseas. They wanted to be paid in the UK. So UK company, paid in £ into a domestic Barclays account. No problem at all paying gross monies. Outside of the scope of PAYE. HMRC were happy with this arrangement during their inspection. Of course the person in question was liable in their own country.

Generally your liability on salary doesn't depend on where you put the money once it's been paid - ie simply bringing it into the UK won't change your liability. Factors include your nationality, whether you're taking up foreign residence, how long you're out of the UK. You can also be liable in two countries at the same time but have the tax you pay in one country operate as a credit against the bill in another through double taxation agreements.

I've been on both ends of this and been both an employer and employed. I've never had a problem with the HMRC. I do know many people just leave without going through any procedures and have trouble later.

Perhaps your company's HR department will give you some advice - but it's well worth checking out the various HMRC leaflets yourself.

As for your original question - I've just kept cards going by maintaining an address here. I think the most they could do is stop further spending - I can't see how they could demand the balance to be paid immediately.