Boring tax question

starfighter · 12 Jan 2010 at 16:15

My rents own an apartment in Spain, They let it out and pay tax I assume in the normal UK way.

Me and my mate are going out for a month or so in summer and will be hopefully working for my dads friend who works on fancy yachts and boats, apparently he needs help and it pays well so the idea is a bit of work and a bit of a holiday in one.

My question is what do I do with the money?

It will probably be paid in cash, not sure if I will get any kind of receipt or anything, Assuming I don't spend it all I can apparently bring up to 10000 euros into the UK.

But then what, assuming I get past customs can I simply put it in my bank no questions asked? Or would I have to pay income tax? (already pay it on 25k wage).

I wouldn't be overly bothered but if this is as lucrative as my dads mate says I might be doing it more often and I would like to save some of the wonga rather than having thousands of £s in my mattress.

I have a mate that says there is a loophole where you can do this but tbh It seems like I am dodging tax. Obviously I would rather pay less tax but not if it is illegal.

There do seem to be tax rules for people working abroad etc, this 10k seems to be for when you go on holiday, but how many times could one go on holiday if you get my drift. seems like a big hole if it is the case?

Please help.

Biohazard · 12 Jan 2010 at 16:20

I take it your meaning working on the black?

Does your dads friend have a company or has papers? Your in a world of **** if the Gardia Civil catch you if not.

Good luck, I've had first hand experience of that kind of work in Spain and it isn't easy. Most people are out to rip you off and tbh there wasn't a lot of work there in the first place (all of the major marinas in the costas).

I would speak to the guy myself if I were you, as a lot of hopes and dreams get dashed in Spain. Just re-read it and see your parents have a place there, same here. That will make it easier then.

If you are earning that much, you need to be paying the Spanish (afaik) depending on residency.

Rich_L · 12 Jan 2010 at 16:20

You are ordinarily resident in the UK so will pay UK tax on your earnings. You'll have to do a self-assessment form I imagine and your tax will be calculated then I think. Although if you pay tax on it in Spain you can qualify for equivalent relief against UK tax.

If you're on 25k odd then it'll be a 20% deduction, unless you start earning loads through this.

Dj_Jestar · 12 Jan 2010 at 16:32

The income tax will be ontop of your 25k salary (total earnings) and if you try to bring more than the allowed limit into the country, you'll have to pay duty on the excess too.

AFAIK...

Showboat · 12 Jan 2010 at 17:15

If you put a lump sum in the bank they may want to know whats its from.. just remember "i sold my car"!

Ahleckz · 12 Jan 2010 at 17:29

Can I come with you and your friend, please?

I know someone with an account in the Caymans, he may be able to assist in the tax evasion - but only if you let me come.

Vonhelmet · 12 Jan 2010 at 18:21

Rich L is right. You'll remain uk resident, so you'll have to pay uk tax on your overseas earnings. This may be affected by the uk-spain double tax treaty, but I'd guess that you'll just be able to claim a credit in the uk for any tax paid in Spain.

A large cash deposit to a bank is likely to trigger alarm bells with HMRC, so you may be chancing your arm if you don't report it.

If you don't get taxed in Spain then... That bit is the employer's problem, but you'll still be liable to uk tax.