Forum Moderators: martinibuster
BUT don't take my word for it. Ask your accountant.
I don´t see the relevance in this case but i am no expert.
I´d be more worried about exceeding personal tax allowances and having to pay tax on your earnings.
You could do the same with a national UK bank/building society account however that is far more easily traceable...and if you feel this plays against the accepted "rules", just check how many of your elected MP's and well-known personalities do exactly the same.
Avoidance, not evasion, is the name of the game...and yes, before anyone says so, I do know that one is supposed to declare these earnings when spent in the UK...you be the goody twoshoes, I'm not working my butt off to keep a load of dross in benefits for doing zilch.
Yep...I'm not PC when it comes to this:-)
You don't pay VAT on Adsense earnings since the transaction takes place in the US which means it is outside the scope of UK VAT.
This is no different to if you were to sell a product to someone in the US - you wouldn't charge them VAT on the sale either.....
From what i've read if your earning over £4300 or there abouts you have to pay tax even if it comes from a different country.
Best bet is to ring the Inland Revenue, they'll probably send you the necessary forms to declare it.
You won't have to pay too much as you can use the cost of your PC, broadband, hosts and domain renewal etc. to offset against the tax.
Best bet is to ring the Inland Revenue, they'll probably send you the necessary forms to declare it.
That's it, keep paying out hard-earned money for others to reap their social security benefits!
You won't have to pay too much as you can use the cost of your PC, broadband, hosts and domain renewal etc. to offset against the tax.
Hmmm...I can assure you that a high earner in the UK who also happened to earn, say an extra £24k pa from Adsense, wouldn't hardly see a thing after even more tax...they may as well not even bother displaying Adsense.
It's perfectly legal to have an offshore account people, use it to your own advantage. As Lord Clyde said:
"No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores.
The Inland Revenue is not slow – and quite rightly – to take every advantage which is open to it under the taxing statutes for the purpose of depleting the taxpayer's pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue.”
If you want to be philanthropic and give all your hard-earned Adsense earnings away, feel free to do so, however there is nothing to stop you organising your finances in a much better way:-))
VAT does not apply as you are not selling anything, but tax does, and just because you have an offshore account does not make you less liable. In any event Google will only bank your money in a bank located in your own country.
What you are suggesting is tax evasion, not avoidance, but I do agree with you about the scroungers as well if that is of any comfort.
I certainly won't be employing you as a tax consultant since you are incorrect!
It's as simple as that and if you don't wish to believe me, fair do's, however I have not spent the last 30 years doing this and not learnt anything and I can assure you my overall business earnings are well into six figures...Sterling...however, and this is extremely important, how much of that I choose to bring into the UK tax jurisdiction is up to me:-)
If you don't believe me, ask the taxman.
In any event Google will only bank your money in a bank located in your own country.
Completely and utterly incorrect again.
Where I deposit my cheque is of no interest to Google. They send me a Sterling cheque and I deposit it in my bank...end of story.
If that Sterling account is based on the mainland of the UK or offshore is of no interest to them.
Heavens...why does everyone want to hand over their hard-earned money so readily? Do you honestly believe the really wealthy became so because they handed over their earnings completely to the taxman?
There are loads of onshore legal methods of negating tax issues however the beauty of Adsense is that it is earned OUTSIDE the UK therefore there is nothing, absolutely nothing, to stop you depositing it anywhere you choose to do so.
Google even gives you the option of whichever currency you want it in too...how much easier could it be?
"if you are domiciled in the UK and are liable as a resident taxpayer."
I also said google banking your money, not you!
If the Inland revenue decide your domicile is the UK,
(Normally resident), for tax purposes, they don't care if your bank account is on the Moon, or that any money that goes into it was as a result of some business transaction which occured outside the UK, they want there slice.
The purpose of an offshore bank account is for people who are not resident in there home country for tax purposes to enjoy a better tax structure than they could get if following there home country system. It is where you are considered domiciled for tax purposes that counts not where you have stached your money.
You have to declare offshore assets, and income.
I was referring to EFT when I mentioned Google banking your money, not you banking your money.
Google unless they have changed the rules will not post a check to an address to a country other than the one you registered with. You cannot do a EFT to a bank in a country other than in the country you registered with. They may have changed this, but as I have only been doing adsense a few months,I dont think so.
What you did not state in your post is where you are actually living and for how long, and whether or not that is where you are actually living!
"if you are domiciled in the UK and are liable as a resident taxpayer."
Yes I did read that.
I also said google banking your money, not you!
Yes, I know you did.
I am not going to bother with this any further since you obviously have had no experrience with the reality of dealing with this scenario. I have, it is all completely legal and above board, agreed to by the Inland Revenue and signed off as acceptable every year.
The UK is NOT the USA when it comes to earnings.
they don't care if your bank account is on the Moon, or that any money that goes into it was as a result of some business transaction which occured outside the UK, they want there slice.
Complete and utter balderdash...they have absolutely no call on any income until it is brought into the UK.
Why on earth do you think that so many companies and offshore workers have offshore business and personal accounts? Quite simply because they are permitted to do so and if you don't want to believe that, fine, I'll continue running my businesses my way and you keep paying your punitive taxes.
I'm making no further comments on this matter.
So where is your actual domicile for taxation purposes?
"Why on earth do you think that so many companies" That I know, it is to reduce there tax burdon, but if a person that is normally resident in the UK for tax purposes gets any income from that offshore company, it is taxable at the UK rate.
