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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I recently moved to Gibraltar and I am setting up and

Customer Question

Hi there - I recently moved to Gibraltar and I am setting up and registering my company to be self employed. I am due to start work for an international not for profit that will pay me on an international consulting contract and I will need to sort out my own local tax contributions to gibraltar. They prefer to pay me into a UK account as they are not set up for Gibraltar. If they pay me into my bank account in the UK - Cooperative Bank - and I transfer the funds each month to my Gibraltar business bank account, is that legal? Is that considered transferring funds illegally and will I have to pay additional fees/costs for transferring the funds? - Kemi
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question..

Transferring funds from one bank account into another held by the same person albeit in different countries is legal.

Your bank may require information to support that the movement of funds is in compliance with money laundering regulations.

What you are doing is in effect transferring your disposable earnings.

There should not be additional fees costs other than admin charges levied by the banks.

I hope this is helpful and answers your question.

If you have any other questions ,please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.
Thank you - and so I can tell my client that they can pay me into my UK account under my name and I can transfer funds each month into my business account in Gibraltar and declare those funds my earnings and pay tax on that? What if I was to only transfer part of the money I am paid in my UK account, into my Gibraltar business account? Does that mean that I would only be paying tax on the amount of money that I have transfered and not be paying income tax on the part I have left in the UK? Is that legal? Thanks
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your prompt reply.

Let's separate the issues..

You would be taxed on your income/profit from your business as per local tax rules.

The fact that there is a payment made into your UK bank account and only funds on a needs basis are transferred into the account in Gibraltor is irrelevant.

Non disclosure of income for tax purposes is an offence and subject to fines and penalties if established through enquiries.

I hope this is helpful.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you - that is very helpful - that's all I need.
Expert:  taxadvisor.uk replied 1 year ago.

I thank you for accepting my answer.

Best wishes

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