Wife Working From Thailand For Uk

[Bmouthboyo]

Hi Guys,

My wife will be following me to Thailand as a dependant when I start my new job in August. She currently works in a job in the UK that have indicated she could continue to do work on projects on a as needed basis from Thailand when we move.

We are a little unsure how this would work in terms of:

-Does she need to pay UK Tax or Thai Tax on the earnings

-Would having the money paid into our UK or Thai account have any bearing? and if so which is more favourable to maximise returns?

-How do most people whose wives take on extra UK based work whilst in Thailand arrange this?

-Would she have to get a different Visa than the one she will get as a dependant of me?

Thanks guys, early talks about it at moment but good to know the main pros and cons.

[Mario2008]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

[Soutpeel]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

[Billmont]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

I do not think she would need to pay tax in the UK as the work she would be doing is being performed outside of the UK and the EEC albeit for a UK based company one would assume. There could be tax issues arising from regular visits to the UK but if she will remain outside of the UK long enough to become non-resident then I do not think any work performed in Thailand will be subject to UK tax.

[Paul888]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

I do not think she would need to pay tax in the UK as the work she would be doing is being performed outside of the UK and the EEC albeit for a UK based company one would assume. There could be tax issues arising from regular visits to the UK but if she will remain outside of the UK long enough to become non-resident then I do not think any work performed in Thailand will be subject to UK tax.

Unless you know a lot more about the specifics of this particular case than are presented here, I don't think you have anywhere near enough information to make this comment.

A simple call from the OP to the Inland Revenue helpline will give him the answer he requires about UK tax. (notwithstanding the fact that as stated his wife would technically be breaking Thai law)

Helpline number here http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

[Billmont]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

I do not think she would need to pay tax in the UK as the work she would be doing is being performed outside of the UK and the EEC albeit for a UK based company one would assume. There could be tax issues arising from regular visits to the UK but if she will remain outside of the UK long enough to become non-resident then I do not think any work performed in Thailand will be subject to UK tax.

Unless you know a lot more about the specifics of this particular case than are presented here, I don't think you have anywhere near enough information to make this comment.

A simple call from the OP to the Inland Revenue helpline will give him the answer he requires about UK tax. (notwithstanding the fact that as stated his wife would technically be breaking Thai law)

Helpline number here http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

We are not into specifics here just generalisms and I repeat what I say about non UK residents who work outside of the UK or EEC will not be subject to UK Income tax for work wholly performed outside of the UK and EEC. The fact that any person working outside the UK either legally or illegally is a different subject and is of no concern to the UK authorities if you are not breaking the UK law. Therefore if you work in Thailand without a work permit I would be very surprised if it is of any interest to HMRC and by raising this particular point you are just clouding the issue.

[Basil B]

It is unfortunate there is no acceptance of people who are basically working from home in an administrative roll for a overseas companies in jobs that would not be open to Thais, technically say any one who is on holiday in the kingdom takes a work related call from their employer is braking the law.

If it just involves a computer, post and phone from home hardly likely the Thai authorities would ever find out but if you do get caught out it could be very problematic, best find out what could happen if found out and could you cope with the consequences.

As for tax she will almost certainly be accountable to HMRC but any tax payable to the Thai government can be offset against the UK tax due to the UK/Thai Double Taxation Treaty

http://www.hmrc.gov.uk/taxtreaties/dta.htm.

[Soutpeel]

technically say any one who is on holiday in the kingdom takes a work related call from their employer is braking the law.

Technically they are not, as the people who are working in Thailand like this are claiming "residence" in Thailand, were as tourists do not claim residency...even the DOL and immigration can see this difference.

As for tax she will almost certainly be accountable to HMRC but any tax payable to the Thai government can be offset against the UK tax due to the UK/Thai Double Taxation Treaty

Agree with the HMRC portion of this comment, but how will the second part of your comment work if one is working illegally in Thailand, how do you explain why your paying tax in Thailand to the Thai tax man ?...your paying it out the goodness of your heart ?...

Edited May 5, 2013 by Soutpeel

[Maestro]

Would not the UK employer have to deduct tax from the employees pay and remit it to the revenue office? I don't know how this works with part-time employees in the UK.

[Soutpeel]

Would not the UK employer have to deduct tax from the employees pay and remit it to the revenue office? I don't know how this works with part-time employees in the UK.

Yeap....if the person is on the UK company books, they will tax you at source

[Bmouthboyo]

Thank you for the responses, sorry i only just saw the replies.

I will be honest that I am not entirely sure what visa she will have as my employer is sorting it out, I know we need to get a single entry non-immigrant B visa and dependents visa prior to arrival then I will get a work permit once there. i assume she will be on some form of dependents visa?

As far as the UK goes we will be non resident so I am surprised she would have to pay UK tax to HMRC, although figured the company paying her would have to declare it somehow. The work would be casual computer based work and she would not be employed by them, just as and when needed to help with deadlines. Even if UK tax was due it would be below the UK threshold.

[spw888]

As an entrepreneur & business owner, I would advise the following: Have your wife set up her own company in Thailand - of course following all required laws. Have the company in UK invoice her company in Thailand for services provided. At the same time advertise and market those services to others to maximise income. The company would pay tax in Thailand, your wife would also pay her tax locally through the work permit by being employed by her own company.

I don't know the feasibility of this as I don't know your family situation - kids/school etc. But it is a solution worth considering which would not only comply with all required Thailand and UK business and tax laws, but would also give your wife meaningful employment and, who knows, you might even make some money!!!

Working for yourself is the most liberating thing - no bosses, no idiots telling you what to do, succeed or fail on your own! Buy and read every book and article you can find. Join LinkedIn. Join InterNations. Go for it!!!

[jacko45k]

A simple call from the OP to the Inland Revenue helpline will give him the answer he requires about UK tax. (notwithstanding the fact that as stated his wife would technically be breaking Thai law)

Helpline number here http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

A simple call might give her a long stand.

[stopthegreed]

She doesnt even need to tell Customs and revenue. But if she wants to keep it all above board, she pays her UK tax and as long as she does not spend more than 90 days in the UK during that particular tax year she simply claims it back as non resident. I have done this for years.

[Anthony an Panida]

You really need to add this to your work permit. A good friend who is in the Thai police told me you can add more than one purpose on the work permit. If you work in Thailand without a work permit you will be fined 30000 baht at the very least. Immigration are focusing on this issue at the moment to boost their revenue. They have even started cross checking records which is a first for them. My advice, if you want to stay happy in Thailand, don't risk it. There are Thai people who can help do the paperwork for you.

[Paulbod]

Thank you for the responses, sorry i only just saw the replies.I will be honest that I am not entirely sure what visa she will have as my employer is sorting it out, I know we need to get a single entry non-immigrant B visa and dependents visa prior to arrival then I will get a work permit once there. i assume she will be on some form of dependents visa?As far as the UK goes we will be non resident so I am surprised she would have to pay UK tax to HMRC, although figured the company paying her would have to declare it somehow. The work would be casual computer based work and she would not be employed by them, just as and when needed to help with deadlines. Even if UK tax was due it would be below the UK threshold.

I can assure you if you are only in the UK for less than 90 days per year you do not pay tax. Even if you are working for a UK based company. I work for a UK company and travel the world. I am not in the UK for more than 90 days and I do not pay UK taxes.

As for the work permit in Thailand forget it.

You are working from home not taking any revenue from Thailand. Don't worry about it.

[lumply]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

I do not think she would need to pay tax in the UK as the work she would be doing is being performed outside of the UK and the EEC albeit for a UK based company one would assume. There could be tax issues arising from regular visits to the UK but if she will remain outside of the UK long enough to become non-resident then I do not think any work performed in Thailand will be subject to UK tax.

Or from day one get a zero code from the Inland Revenue from the reputable company that will be paying/employing her to avoid paying tax in that first year. There used to be some discretion exercised by the IR but I'm not sure if this is still the case. My understanding is that tax does not need to be paid on earnings that are wholly derived from overseas activities in country that does not have a taxation agreement with HMG, which Thailand does not. I fully expect a storm of comments along the lines 'you don't know what you're talking about' but at the end of the day, sensible advice must always be to check directly with the IR or a competent tax lawyer.

[Stjohnm]

Your wife would be working in Thailand and for that she needs a work permit, for which she needs to be employed by a Thai based company. That is a problem for most people in similar situation, reason a lot chose to keep quiet and work illegally and therefor do not pay tax in Thailand or do not work to keep it legal.

and to follow on from Mario2008's comments...she would need to be paying tax in the UK

I do not think she would need to pay tax in the UK as the work she would be doing is being performed outside of the UK and the EEC albeit for a UK based company one would assume. There could be tax issues arising from regular visits to the UK but if she will remain outside of the UK long enough to become non-resident then I do not think any work performed in Thailand will be subject to UK tax.

If she's working for a UK company & getting paid into a UK bank account then she'd have to file a return with HMRC

[oldhand]

For goodness sake guys this is a really easy one!

If your wife is working from home and never in the office or representing the company then ignore the Thai authorities, she is there as your wife and only that. She will be on a dependants visa. If and when she works for the company, pay her from the UK into a UK bank account and as long as she remains non-resident (not in UK for more than 91 days per year) then she will not have to pay tax on the income. If she spends more time than that in the UK she will have to pay UK tax on the income.

If your wife is to work in the office or represent the company then she needs a work permit and will have to be paid exactly as you are.

[Bmouthboyo]

OK thanks a lot guys makes things a lot clearer

[mokwit]

You really need to add this to your work permit. A good friend who is in the Thai police told me you can add more than one purpose on the work permit. If you work in Thailand without a work permit you will be fined 30000 baht at the very least. Immigration are focusing on this issue at the moment to boost their revenue. They have even started cross checking records which is a first for them. My advice, if you want to stay happy in Thailand, don't risk it. There are Thai people who can help do the paperwork for you.

Can you please clarify: 'They have even started cross checking records which is a first for them.' Cross checking what records? - not running scared it is just that I recently had to tell someone that things had changed.

[beautifulthailand99]

For goodness sake guys this is a really easy one!

If your wife is working from home and never in the office or representing the company then ignore the Thai authorities, she is there as your wife and only that. She will be on a dependants visa. If and when she works for the company, pay her from the UK into a UK bank account and as long as she remains non-resident (not in UK for more than 91 days per year) then she will not have to pay tax on the income. If she spends more time than that in the UK she will have to pay UK tax on the income.

If your wife is to work in the office or represent the company then she needs a work permit and will have to be paid exactly as you are.

Also keep quiet about to to all you meet and socialise with as you don't want some malcontent traipsing down to the authorities.

[bkk_mike]

Thank you for the responses, sorry i only just saw the replies.I will be honest that I am not entirely sure what visa she will have as my employer is sorting it out, I know we need to get a single entry non-immigrant B visa and dependents visa prior to arrival then I will get a work permit once there. i assume she will be on some form of dependents visa?As far as the UK goes we will be non resident so I am surprised she would have to pay UK tax to HMRC, although figured the company paying her would have to declare it somehow. The work would be casual computer based work and she would not be employed by them, just as and when needed to help with deadlines. Even if UK tax was due it would be below the UK threshold.

I can assure you if you are only in the UK for less than 90 days per year you do not pay tax. Even if you are working for a UK based company. I work for a UK company and travel the world. I am not in the UK for more than 90 days and I do not pay UK taxes.

As for the work permit in Thailand forget it.

You are working from home not taking any revenue from Thailand. Don't worry about it.

Be very careful. The Inland Revenue have changed the rules for tax residency.

It's no longer the simple 90 day average...