Hi,
I hope some one can answer my question.
Here is my situation, I am Domiciled within UK since 2020 April, Resident and Ordinarily Resident. I own 100% of a UK company pay my self a salary (PAYE), take profits and declare my taxes (self assessment) to HMRC both personal and the companies. My own accountant does that so no problem there. I am also 100% owner of an Estonian Company. Do not take any salary or distribute profits. There is an exemption to the CFC rules if the accounting profits are below £500K and non trading is below £50K, which is the case. It will always be between £0 to £100K. I believe it is also safe. I hope so far, I am doing nothing wrong.
Here is the tricky part, I also have a wife that will be (self assessment will be claimed) Domiciled outside UK , Resident and Ordinarily Resident here in the UK with me. She does not own any shares in both companies, she is an employee of the UK company, gets paid with PAYE scheme. We pay her taxes and National Insurance via company just like my self. She is not an employee of Estonian company but she performs professional work outside the UK for the Estonian company. We are 2-3 months away every year, and she gets paid from the Estonian company to her bank account in a third (home) country. According to our home country, you are not a tax resident if you are based outside the country and live less than 183 days there. Only your earnings from the country must be taxed, not foreign earnings. Since she will not remit those earnings, to the UK, we believe we are safe when she claims non-dom remittance basis. I also asked my accountant but still waiting for his response.
To give some context, the amounts are not that high, her professional work done outside the UK and never remitted to the UK will be roughly, £100K a year max.
Now, is there any thing that I am missing here with this setup ?
Is she liable to UK tax for her professional work done outside the UK ? or those are Liable on remittance ? like we hope it would.
I appreciate your responses.
I hope some one can answer my question.
Here is my situation, I am Domiciled within UK since 2020 April, Resident and Ordinarily Resident. I own 100% of a UK company pay my self a salary (PAYE), take profits and declare my taxes (self assessment) to HMRC both personal and the companies. My own accountant does that so no problem there. I am also 100% owner of an Estonian Company. Do not take any salary or distribute profits. There is an exemption to the CFC rules if the accounting profits are below £500K and non trading is below £50K, which is the case. It will always be between £0 to £100K. I believe it is also safe. I hope so far, I am doing nothing wrong.
Here is the tricky part, I also have a wife that will be (self assessment will be claimed) Domiciled outside UK , Resident and Ordinarily Resident here in the UK with me. She does not own any shares in both companies, she is an employee of the UK company, gets paid with PAYE scheme. We pay her taxes and National Insurance via company just like my self. She is not an employee of Estonian company but she performs professional work outside the UK for the Estonian company. We are 2-3 months away every year, and she gets paid from the Estonian company to her bank account in a third (home) country. According to our home country, you are not a tax resident if you are based outside the country and live less than 183 days there. Only your earnings from the country must be taxed, not foreign earnings. Since she will not remit those earnings, to the UK, we believe we are safe when she claims non-dom remittance basis. I also asked my accountant but still waiting for his response.
To give some context, the amounts are not that high, her professional work done outside the UK and never remitted to the UK will be roughly, £100K a year max.
Now, is there any thing that I am missing here with this setup ?
Is she liable to UK tax for her professional work done outside the UK ? or those are Liable on remittance ? like we hope it would.
I appreciate your responses.
