Foreign Earnings

stroller_2

My Chinese wife is currently living in China but will soon become resident in the UK (legally). The Hong-Kong company she is currently working for want her to do some remote support and consultancy work and she will get paid for this.

But what are the pros and cons of either getting paid into a UK bank account or a Chinese account. (She cannot open a HK account as she is not resident there.)

She does have a mortgage on a Chinese property which still needs paying.

Many Thanks, H.

fengirl_2

She will be resident in the UK for tax purposes, but I imagine she will retain her Chinese domicile as it's very very difficult to change your domicile status. In this case, she will only pay UK tax on any overseas earnings remitted to the UK. She will be liable to UK tax on all her UK earnings.

Cook_County

It is quite possible that HMRC will argue that she will create a permanent establishment of the HK company so exposing the profits attributable to her work to UK corporate tax.

At a personal level the earnings will be entirely taxable in the UK because she will be doing the work once she is UK resident (domicile is not relevant for most self-employed earnings).