UK Tax

UK tax questions? Ask a UK tax advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I have recently changed from living in the UK and running a…

I have recently changed from...
I have recently changed from living in the UK and running a limited company in the UK to being a sole trader living in Japan.
My work is still mainly within the UK, so the majority of my income is coming from UK companies which is paid into a UK bank account (their preference rather than paying into a Japanese account)

The problem is, I expect to pay tax here because I am a resident here, but the answer from the tax offices here seems to be either 'income that does not enter Japan does not need to be declared' or 'if the money goes into a UK bank account there's no way for us to track it' so there's nothing they can do about it. Does this then leave me with the only option being to demand my UK clients pay me in yen to a Japanese account to keen the tax offices here happy?

or can I register as a UK sole trader even if I am non resident there? or possibly even be on the payrol from a UK company being a non resident since the only difference is that I am working remotely.

I know that I have to pay tax somewhere, and Japan seems like the right place since I'm living here, but is there no way around the bank account problem? does anyone else have experience of this?

thanks for your time.
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 7 hours by:
4/11/2013
TaxVince
TaxVince, Accountant
Category: UK Tax
Satisfied Customers: 972
Experience: Chartered Accountant >20 years + Qualified IFA
Verified

MamaTax :

Hi Its MamaTax Here!

MamaTax :



Hi there



Thanks for the question. What services/ trade are you in? Does it require you to carry it online/virtual or you have some presence in UK for your UK clients. Do you have clients other than UK?




Regards

Customer: Hi again, it's web design and web development so I am building websites for one main client in the UK (a Design agency), with a couple of other smaller clients both in the UK and Japan. I work via Skype with the design agency in London, building websites to specification and offering consultancy on the technical aspects of their website builds. I also maintain their web servers for the websites that they host for their clients. So they have offered me a fixed contract in order to make invoicing easier both both parties.
Customer:

So yes, it requires me to work online/virtually in order to carry out the work.

MamaTax :



Thanks for the reply. You are in essence tax resident in Japan and you are liable to Japanese tax authorities for your worldwide income and gains. And not to UK tax office. However if there was any tax paid in UK, you could be able to claim a tax credit in Japan under double tax treaty between UK and Japan.

MamaTax :



If your clients are paying directly to your UK bank account there isn’t a bid deal though you could be seen as if you are trading in UK. If you are keen to have GBP currency from clients you can still open Japanese GBP account where you are or if not you can open one offshore in places like Isle of Man, Channel Islands etc – which share same bank names and same UK system- most clients would be comfortable with the banking process there than working with international banks.

MamaTax :



Given that most of the work is done online..it is also worth investigating /considering and depending with Japan tax rates is setting up an offshore company that is resident in low tax jurisdictions like Gibraltar, Isle of Man, Channel Islands where you can provide those services from as long as you meet some steps required to do that. That will save a lot of tax…If anyone has an online business it doesn’t make much tax reasons to set it up in a high tax jurisdiction since an online company can be set up anywhere in the world.



Hope this helps.

MamaTax :





Let me know if you are answered or have any further comments.








 

Customer:

Thanks, ]

Customer:

I guess my next question then is, whats the advantage of having an offshore account in the Isle of man, channel islands etc as opposed to directly in the UK.... my problem at the moment seems to be that I need the money to be coming into a Japanese bank account for the japanese tax authorities to be able to deal with it. Setting up a Japanese GBP account seems to be the best bet, so I need to find the best cross way bank between Japan and the UK, perhaps Shinsei or Citibank. I wonder if having a GBP Japanese account will still be viable for my Uk clients to transfer money into without exorbitant fees. Any advice or experience you could offer in this department would be most welcome... thanks veryt much

Customer:

this may be a good solution:
http://www.survivingnjapan.com/2012/06/how-to-transfer-money-to-and-from-japan.html#comment-858276255

problem is though, I'm not sure I can set up a UK Citibank account now that I'm no longer a Uk resident.

Customer:

this is also helpful:
http://forum.gaijinpot.com/showthread.php?122154-Living-in-Japan-but-work-for-and-paid-by-a-foreign-company&p=1289969&viewfull=1#post1289969

what would you advise based on this?

MamaTax :



Thanks for the reply. I would think all you need to do is call the various banks and find out their requirements for registering a bank account. Transferring to a foreign bank sometimes results in heavy charges that why I thought a Barclays/HSBC/RBS –offshore account will help. For tax to be paid you don’t have to have a local bank account for the money to be taxed, unless the rules there are different from the rest of the countries – where tax is based on accounting records and accrued transactions (and not on cash basis). thanks

MamaTax :

Hi. Are you still there?

MamaTax :

Do you have any further comments.

Customer: No, that's great thanks
TaxVince
TaxVince, Accountant
Category: UK Tax
Satisfied Customers: 972
Experience: Chartered Accountant >20 years + Qualified IFA
Verified
TaxVince and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with an uk tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask TaxVince Your Own Question
TaxVince
TaxVince
TaxVince, Accountant
Category: UK Tax
Satisfied Customers: 972
972 Satisfied Customers
Experience: Chartered Accountant >20 years + Qualified IFA

TaxVince is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,546 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

931 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
I am currently a sole trader in the UK. I am going to be
I am currently a sole trader in the UK. I am going to be moving to Dubai and setting up my registered office there. However, I will still hold stock in the UK & be selling to consumers in the UK & Eur… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,192 satisfied customers
Tax free purchases. My family member has a business in the
Tax free purchases for export. My family member has a business in the UK where the buy clothing at retail and resell it ONLY to Japanese customers. I think there should be a way to make these purchase… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
I am from India, a non UK citizen, but UK resident & I
Hi, I am from India, a non UK citizen, but UK resident & I have 1 year work visa. I'm working full time and planning to invest in the forex market in a company located in UK. With my UK bank account d… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
931 satisfied customers
I live in London. I am Japanese.If I will be employed from
I live in London. I am Japanese. If I will be employed from a Japanese university, how can I pay income tax?… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
931 satisfied customers
Hi, is it possible to register as a sole trader and open a
Hi, is it possible to register as a sole trader and open a bank account in UK as non resident? Work will mostly be done online, so I would only be in UK for couple of weeks per year. Sales would proba… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
Hello, I have a question regarding tax treaties. I was
Hello, I have a question regarding tax treaties. I was a non-resident (tourist at the time) in Japan in 2008 and sold a piece of land. I paid withholding tax, but not capital gains tax. I recently rec… read more
TonyTax
TonyTax
Tax Consultant
High School or GED
8,914 satisfied customers
Hi! I want to open a sole trader in UK. Im an EU member
Hi! I want to open a 'sole trader' in UK. I'm an EU member (from Romania) and I sell fashion products on the internet. I do this while I'm travelling in different EU countries. The business is very sm… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
Hi! I am working as a contractor for an international company
Hi! I am working as a contractor for an international company and my salary is paid into my UK account (I'm registered as a sole trader). However, I now live in South Africa and my work takes place on… read more
TaxVince
TaxVince
Accountant
972 satisfied customers
It is highly desirable that the person who answers my questions
It is highly desirable that the person who answers my questions is the UK chartered accountant. Please confirm your status if you can. This is my case: I was born in Russia. My father and father's fat… read more
TaxVince
TaxVince
Accountant
972 satisfied customers
I am looking to develop new and renovate existing properties
I am looking to develop new and renovate existing properties in the UK. Some of these properties will then be held as investment properties with most being sold. I also wish to do the majority of prop… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
Hello, Had a question that i was hoping could be answered. Im
Hello, Had a question that i was hoping could be answered. Im a british citizen, currently settled for the past five years in Dubai - U.A.E I have a british client that would like to renumerate me for… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
I am a British citizen, but have been working and living in
I am a British citizen, but have been working and living in Japan for around 12 years (not UK tax resident, all income & taxes in Japan). I am leaving Japan next week. I will work in Dublin for 6-9 mo… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
Can a non resident who frequents the UK become a sole trader
Can a non resident who frequents the UK become a sole trader in the UK and pay taxes? .Can such an individual open a bank account and operate it as a sole trader? Is this allowed by law ?… read more
TaxVince
TaxVince
Accountant
972 satisfied customers
My question is what are my income tax liabilities considering the following background:
My question is what are my income tax liabilities considering the following background: I am British and for the past 11 years I lived and worked in Japan for a Japanese firm under PAYE (only voluntee… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
We currently are UK domiciled but non UK tax resident and are
We currently are UK domiciled but non UK tax resident and are envisaging retiring to UK, whilst our children finish their education, then re-emigrating. Our preference, whilst in the UK would be to ma… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
Hi, My husband sold a few softwares worldwide, he received
Hi, My husband sold a few softwares worldwide, he received the money through pay pal. My husband has been overseas for last 8 months, however the pay pal account is register in the UK. How can he form… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,546 satisfied customers
I am currently non resident in the UK, and have been for some
I am currently non resident in the UK, and have been for some 5 years. I am working for a Dutch firm, and getting paid out of their Cyprus office. My sallary is currently £60k nett. And as I do not re… read more
Anne T
Anne T
Bachelor\u0027s Degree
146 satisfied customers
Hello, I am a UK based consultant - mainly working overseas
Hello, I am a UK based consultant - mainly working overseas for past 10 years on contract to UK companies, leading EU project teams. I've been paying UK as a sole trader - and VAT. Since March this ye… read more
Andrew Baker(baktax)
Andrew Baker(baktax)
Personal Tax Adviser
High School or GED
756 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x