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We have a business in Kenya. My husband lives in Kenya and

Customer Question

We have a business in Kenya. My husband lives in Kenya and visits UK for 30 days in a whole year. I live with my son in the UK.
I want to setup a business structure in the UK solely to transfer the income from Kenya to UK and to have an income proof for mortgage purposes. Both myself and my husband would like to be setup as employees.

Please suggest a company structure that would best work out for our situation with minimal tax responsibilities. If you have suggestions without setting a company also please let me know.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

My immediate reaction is why bother with a corporate structure at all. If your husband transfers moneys it is a gift and inter spouse transfers are outside the scope of UK taxation. Once the money is in your account you can do what you like with it. If you set up a UK company and start paying yourselves you will be liable to UK Income Tax and National Insurance contributions which seems to me an exercise in financial futility.
Customer: replied 3 years ago.

Thanks Keith. However, if we cannot prove income in the UK, it might be difficult for mortgage purposes or immigration purposes (to USA).


 


My husband pays tax in Kenya for the income though. We both are british passport holders.


 


Thanks,


Regards,


Padmini S

Expert:  bigduckontax replied 3 years ago.

Hi Padmini S

 

Before going down the corporate road I would be inclined to check with the relevant authorities, mortgage providers and the US Border and Homeland Protection Agency if they will accept a Kenyan tax assessment as a proof of earnings. It would save an awful palaver.

 

Furthermore paying an income through a company from funds already taxed would expose the recipient to UK Income Tax and NI, effectively taxing the same income twice.

 

Keith

bigduckontax, Accountant
Category: Tax
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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