Money transfer

I am British citizen currently living in England. I currently operate as a soletrader offering services to a single client in the United States. The client pays me in dollars into a (U.K.) Barclays Foreign Currency Account. I have no UK-based income - this has been my working arrangement for the past 18 months. I have received only foreign income since September 2021. I have been submitting tax returns on that income. All my future clients are likely to be based in the U.S., U.A.E. or Caribbean and so I will not be have an U.K. income for some years. I currently have no fixed abode. For the past 4 months I have been staying on the sofas of different friends, families and colleagues. I own no UK properties, businesses or other assets; and I have no other ties to the UK. I now intend to leave the U.K. permanently in the next few weeks and relinquish all tax obligations. I have recently been granted residency in Dubai, on an investor visa for two years. I also set up an LLC there in Dubai. However, I do not intend on moving to Dubai for now (or ever), nor invoicing my U.S. client via the Dubai LLC, but instead to travel internationally and invoice my U.S. client as I usually do, as an individual, receiving the funds into one of my U.K. bank accounts. My work will require me to be many places. I will not however be returning to the U.K. for more days than the statutory residence ties test allows. My questions are: 1. If I am in fact a non-resident for this tax year, and all my income is from foreign sources for my consultancy services, am I able to have that foreign income paid into a U.K. bank account without it being subject to any taxes? I understand from this forum that if, as a non-resident, I transfer money from a foreign account into a U.K. account then only the interest on those monies is taxable. But what if the monies are direct from my client in the U.S. into a U.K. bank account i.e. my Barclays Foreign Currency Account, or maybe a Revolut account. 2. Would it be more advisable to have the U.S. client pay me into a Dubai bank account. And then I can transfer that capital into a U.K. bank account and only pay tax on the potential interest. 3. For the period of this tax year that I've been in the UK, do I need to pay taxes, even if for the whole year I’m not considered a resident and the income isn't UK-based? I've been told that I will have to pay taxes on income “arising in the U.K.”, which is broader than “U.K. income”, meaning anything from April 6 – date of departure, plus income made during any days I might return to the UK (even if that income is from my US client). I'm not sure this is true. In short, my question is: can a British citizen with non-residency status in the U.K. have their foreign income directly paid from a client into a U.K. registered personal bank account.

Hello, I am UK resident and I’ve sent some money overseas to family as borrowing, if they pay me back by sending the same amount of money to my UK bank account, will that need to be taxed? Thanks

Hi sukenik,

You will need to contact our Income Tax team regarding this.

Income Tax: general enquiries

Thank you.

Dear HMRC Admin 25, Thanks for your answer. May I please have your kind advice that which form should I fill in for declaration of my interest income? and, apart from filling related form, are there any other documents that I should prepare for the declaration? thanks.

Hi happy_alfy
There are no income tax implications on the giving of a cash sum, unless interest is paid on the loan.
These would then potentially be subject to tax.  
Further guidance can be found here (www.gov.uk/apply-tax-free-interest-on-savingsTax on savings interest and Tax on dividends).  
Thankyou.

Hi Es
I regret that we are unable to comment on scenarios in this forum.  
You could consider seeking financial advice on this matter.  
On the face of it, you would only be taxable on any interest arising from your account.
Thankyou.

Tax if you’re non-domiciled You do not pay UK tax on your foreign income or gains if both the following apply: -they’re less than £2,000 in the tax year -you do not bring them into the UK, for example by transferring them to a UK bank account” What does it mean transferring into UK account? Do you mean bank, which is originally reregistered in the United Kingdom or bank account which is register for individual in the United Kingdom? transferring money to personal bank account, which is not offshore but register outside the UK is qualify as banking outside the United Kingdom ?

Hi polylincoln
If your interest arises outside the United Kingdom, then you would complete a self assessment tax return, as any foreign income meets the self assessment criteria:
File your Self Assessment tax return online
Also have a look at :
Tax on savings interest
Thankyou.

Hi PJ JAY,

This would be any UK based bank/building society account.

Thank you.

As part of the transfer of funds to the United Kingdom, a non-domiciled entity is responsible for the following: (a) To pay taxes from all funds transferred to a bank account in the United Kingdom (b) To pay taxes on interest earned on transferred funds in the United Kingdom I would like to know which of the following options is correct. Your assistance is greatly appreciated.

Hello, My family and I are moving to the UK soon. I sold my car and got cash money for that. with that money I plan to buy a car in england. it's about 15,000 GBP. can I bring it with me in cash when I come to England ( I can show papers that i sold my car) ? I can fill the decleration but i hope I will not have to pay tax on that. Thank you Ofer

Hi PJ JAY,

You can see guidance here:

Remittance basis 2023 (HS264)

Thank you.

Hi ofer borg,
Yes you can bring it with you, please refer to:
Remittance basis 2023 (HS264)
As you may need to class this as income in the UK.
Thank you. 

Hello, I am planning to buy a property in UK, I am Spanish, with settle status. My parents living there are giving me money to help in the buy. I will pay taxes on the cash gift in Spain. Should I pay also taxes in UK. I know there is an agreement to avoid double taxation. Does it covers this case? Is there any limit on the amount? Thank you very much

Hi Adrian Catalan,
There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Tax on dividends
Thank you. 

Hello, My wife and I just moved into the UK from an overseas country, we will transfer our money from the account which we have in our overseas country to our UK-based bank accounts. Will there be any need of paying tax to the UK government for these transfers? Thank you.

Hi yigiterol,
Please refer to guidance here:
Remittance basis 2023 (HS264
Thank you. 

Hi, I am living under homes for Ukrainian scheme as a refugee in the UK. My family wants to give me a gift cash money for more than £10k. Could you please let me know when I declare them, does tax need to be paid? Thanks

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.  

Further guidance can be found here.

Tax on savings interest

Tax on dividends

Thank you.
 

Hi, my name is Dan. I am a national of Belarus working on a Skilled Worker Visa in the UK. I had a business property (office) in Belarus which was recently sold. I would like to transfer money to the UK to my HSBC bank account. So my questions are: 1. Do I have to tell HMRC about this property selling in Belarus and how I got money to the UK? 2. Do I need to declare this monies and what taxes do I have to pay? It is not income, I owned the office in Belarus and decided to sell it. Thank you