Hi,
I'm a UK citizen, currently living in the US while I study for an MBA. I am returning to the UK this summer and have just accepted a job there. The company (based in the US but with a London office) is paying me a signing bonus, and is flexible as to whether it's paid to me in the US or the UK, since I have bank accounts in both places.
I am trying to work out whether there are tax implications of where I receive the money. I haven't earned anything in the UK since July 2005 (when I left for the States), and the last time I earned in the US was summer 2006, when I had a summer job for three months. So I haven't earned anything in the current tax year in either the UK or US. Nor will I, since my earnings from this summer onwards will fall into next UK tax year.
Do I have any flexibility over where I earn this bonus? In the short term, do I have any flexibility over how much tax I pay now vs later? I am currently very poor, and would like to maximize how much cash I can get now, even if I have to pay more tax later.
I'd be grateful for any thoughts on this.
Thanks a lot,
DB