Paid in $ - less tax?

Question

I'm currently working sub-contract for a company based in the states, doing computer related works. Over the course of the next year I expect to earn approx $200k from this one company if all goes well.

I have a LTD company in the UK, which is basically just me. I must admit to being not particually experienced with business and accountancy. I was speaking to an old friend today who suggested that I am 'silly' to bring all that money over to the UK as it is given to me. He suggested that I should keep some money in the USA, and use a credit card to make purchases and withdraw cash from the account.

Is this advisable? is it legal? and is it worth considering?

kind regards

Chris Blunt · Accepted Answer

If you remain in the US for at least a year you will become non-resident for income tax purposes and the money you earn will not be taxable in the UK anyway.

If not, then you are supposed to declare the income from all sources, regardless of what currency it is in or where it originated.

Tumbleweed · Answer

The way this message is loosely worded, it could be that the OP is working in the UK for a company that is US-based.

In which case, he can certainly keep his money in the US, but he will still have to declare and pay UK tax on it.

Alec · Answer

Unless non-domiciled in UK? Alec

tim · Answer

Not if it goes into the UK company first. Is this UK company the one billing the US client or is it just an irrelevent detail tim

Paid in $ -> less tax?

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