Business Income - Holiday Villas

[itgilman]

I'm about to start a holiday villa rental business in Thailand. The business will be in the name of Thai partner, and will market through internet. Target market will be UK and pricing will be in sterling, so easiest way to collect money would be through my UK bank account, but this would surely be subject to UK tax. Cash on arrival might make the business look dodgy. Are there any other ways of getting payment in advance without paying UK tax? Not big enough yet to use visa or mastercard.

[johnnyk]

Friends of mine do this in France and use PayPal.

Or you could open a Jersey bank account and have it paid in there, check it daily via website to see that funds have been paid.

[londonthai]

as not that many people has paypal you can open a bank account in thailand and ask your guests for bank transfers - but even western union will be OK with you for a small payments like booking deposits.

as lucrative as renting holiday homes might be - it's a very competitive market, especially on the net. I am doing it in Bangkok, and there are not many rental houses, but there are so many hotels doing special rates for a longer stay.

[JimsKnight]

If you stay out the country (UK) for a certain length of time (I forget the exact amount of days, the period is changing in September) you can claim back any tax as you'll be a tax exile.

Ask TV member TaxExile about this as he is 'hip to the scene' so to speak, right Tax?

[smilingjim]

I'm about to start a holiday villa rental business in Thailand. The business will be in the name of Thai partner, and will market through internet. Target market will be UK and pricing will be in sterling, so easiest way to collect money would be through my UK bank account, but this would surely be subject to UK tax. Cash on arrival might make the business look dodgy. Are there any other ways of getting payment in advance without paying UK tax? Not big enough yet to use visa or mastercard.

You haven't really provided enough info. Are you living in the UK or Thailand?

The last thing you want to do is pay money from a Thai business (in your Thai business partners name) into your personal UK account. This could lead to lots of problems with UK tax etc.

Either

1) Open a Thai bank account in the Thai business name or your name (if you are trying to ensure you get your share of the money). Remember Thai taxes will be payable.

2) Open an off-shore account to specifically have these funds paid into

3) Use Paypal - linked to a Thai bank account if you want the funds in Thailand.

[itgilman]

If you stay out the country (UK) for a certain length of time (I forget the exact amount of days, the period is changing in September) you can claim back any tax as you'll be a tax exile.

Ask TV member TaxExile about this as he is 'hip to the scene' so to speak, right Tax?

Thanks for replies to my query. I'm not sure about the tax situation - my UK pension is taxed and so is rental income from UK property. I've queried both with UK tax authorities, and they say that's correct. But I'd be interested to hear what 'TaxExile' thinks.

As for Paypal suggestion - I don't think that Paypal will pay into a Thai bank account.

[Khun Bob]

Paypal does pay into a thai bank account - best to have a kasikorn bank account as you can then transfer to most other thai bank accounts entirely through the net - other bank need you to sign forms and go to the branch - kbank is, in my opinion, the best thai bank...