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Tax when over international waters?
TheBridge_2
Posts: 1 Newbie
in Cutting tax
I will be working on a crusie ship in the caribbean for 4 months this summer. It is an American company and I will be paid in to a US bank account. As it is over international waters and I am not an American citizen, tax will not be deducted from my pay. But how do I get this money back home into my English bank account and in to sterling with out being taxed and incurring conversion charges?
I leave in 3 weeks, please help!
I leave in 3 weeks, please help!
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Comments
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You will report the income on your UK tax return and owe UK tax at your UK marginal rate.0
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Seamen get a special deal if I remember correctly, though I don't know how many nights away it takes to qualify?
Oh dear it is getting tougher all the time:
http://www.hmrc.gov.uk/cnr/res-dom-tax-amends.htm
Back in the 1970's you only had to be away for a month or 6 weeks to get some sort of tax reduction.
This might explain why people on Cruise Ships can become "institutionalised", they dare not get off.
Have the money paid into a tax haven if the Americans will allow it and then talk to to "the old lags" on board. Someone will probably know the score0 -
4 months is not enough for the 100% foreign earning discussion. Sorry!Mary_Hartnell wrote: »Seamen get a special deal if I remember correctly, though I don't know how many nights away it takes to qualify?
Oh dear it is getting tougher all the time:
http://www.hmrc.gov.uk/cnr/res-dom-tax-amends.htm
Back in the 1970's you only had to be away for a month or 6 weeks to get some sort of tax reduction.
This might explain why people on Cruise Ships can become "institutionalised", they dare not get off.
Have the money paid into a tax haven if the Americans will allow it and then talk to to "the old lags" on board. Someone will probably know the score0 -
In order to take this income out of scope of UK tax, you would have to break UK residence. You can only do this by being out of the UK for more than a complete tax year.
As you will only be outside the UK for four months, you will remain taxable in the UK on your WORLDWIDE income, regardless of where you work, who pays your salary or where your salary is paid.
But to answer your question.. if this income is paid into a US account, there is nothing you can do to avoid charges relating to conversion rates. As the income is assessable in the UK, it would have to be declared to HMRC through a tax return (for example) as it is income which has not had PAYE operated against it.0
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