ED visa & Tax

[hickpaul]

Hi all

Long story short...

I have decided to move from the UK to Thailand for a complete lifestyle change and have taken a 6 month lease on a property in Kathu, Phuket from 1st April 2014 with a view to extending it, providing I am happy with life there.

I have a company in the UK that is pretty much self sufficient and my business partner will take care of day to day duties. That said, I will still be in touch with the office on a daily basis via Skype/email etc... and I intend to return back to the UK every 5/6 weeks for board meetings/client meetings etc...

I am a director/shareholder within the UK business and will continue to be paid however, how I get paid can be adapted/flexible depending on advice I recieve to make things as tax efficient as possible. I have a Thai bank account with K-Bank.

In addition to this, i genuinely want to learn the Thai language.

Under these circumstances, I guess the best option would be an ED visa? if so, is there some kind of "multiple re-entry ad-on" which can be purchased? (as I will need to go to the UK on such a regular basis). Or am I barking up the wrong tree with this approach? am I better just doing tourist visa after tourist visa after tourist visa?

Also, does anyone have any advice on how to become economical with my tax position? Essentially, I wont really be working save for the odd phone call/email and when I return to the UK, it will only be for 1 day of "official work" (yes it does need to be in person/face to face). Therefore I'm not residing in the UK, although I am getting paid from the UK. Of course, dividends will be paid but for "other income" could I raise an invoice the the UK company as an "external contractor" and ask for funds to be paid in to my Thai bank account?

Just throwing ideas around but could really do with some advice from people in the know...

Many thanks in advance.

PS: I'm 31 so retirement visa not an option.

P

[Soutpeel]

My advice talk to an accountant who specialises in UK tax and ask them what to do, in your case you are not classed as non resident in the UK, as yet, the rule if I remember correctly is not spending more than 180 days in the UK in 1 year and and average of no more than 90 days per year over 4 years or something that effect

If your getting paid in the UK your liable for full UK tax anyway

[Soutpeel]

And of course you know what you intend doing from thaioland , ie Skype /email technically constitutes working in thailand therefore you need a work permit, further how can you legally invoice a company in the UK as an external contractor when you don't have an external company ?.....HM revenue service is not daft !

[hickpaul]

Soutpeel thanks for the advice so far. Well noted.

[Scottythai]

No idea on the Tax stuff but it's easy to get a ED VISA. I have a 18 month one with multi entries because I work rotation 28/28. Never had an issue.

[hickpaul]

Scottythai, is your ED visa simply a standard one, and does it allow you to go "in and out" of Thailand as you please? I've read somewhere that a re-entry add-on is required?

Thanks

[aussiejon1604]

Hi. Just on your question regarding ED Visa's and multiple entries.

I am currently on this visa so I hope I can be of some assistance.

Firstly the ED-Visa is a little ambiguous in its term or length.

Your first issued ED-Visa will be for a period of 15 months. Each year after that, it will be for a 12 month period. To achieve the first issue, you must apply at a school best prior with 1 months notice of commencement. This one month gives the school enough time to organise a fairly comprehensive amount of paper work and to supply you with a Government Document of Student acceptance. This acceptance letter is applied for you on your behalf by the school you are applying through. With out this letter you cannot enroll officially at the school. They need it as much as you do. It is vital to have and has to be contained in your application process at a Thai Embassy or Consulate OUTSIDE of Thailand. You must make your first ED-Visa application outside of Thailand. In other words you need to come to Thailand with at best a months notice of enrollment, apply at the school and then exit Thailand again to gain the visa. It is a process but with all the relevant paper work, the visa will be issued.

Now for the ambiguous time periods and multiple entries.

1.Your first ED-Visa labelled in your passport is valid only for 3 months, so as soon as you come back into Thailand, Thai customs will mark it as used. This means you only have 90 days legal entry as a student on that first passport labelled ED-Visa.

2. I mentioned your first ED-Visa was good for 15 months earlier. Stay with me.....Your school term and fees are for 15 months initially and then 12 months for consecutive years that follow. Your Ed-Visa IS ONLY EVER GOOD FOR 90 Days. 20 days before your 90 days is up in each instance, your school, providing you're attending, will issue supportive documents during those 20 days that you need to take to immigration before your 90 days expires. Correct supportive paperwork means immigration will grant you another 90 days and continue your ED-Visa for a fee of around 1900 Baht. You will only need to leave Thailand once to get the initial passport ED-Visa. For the years that follow providing you stay at the same school, the 90 day process is just repeated. Your school will charge your annual student fee when its required.

3. Multiple Entry on an ED-Visa. Your ED-Visa is only good for 90 days of which you need to stay in Thailand for around the last 20 whilst your supportive documentation comes through for immigration. Multiple Entry then is only valid for leaving Thailand during the first 70 days. You can come and go as many times as you like on a multiple entry but only during the very first 70 days of your visa. If you see yourself doing multiple trips during this time, then a multiple entry is the right way. If you only plan on doing one trip, then a single entry is sufficient.

4. Most importantly. Do not be out of Thailand when any of your 90 days expire. You must return prior. Failing to do so will see you having to start the whole process again ie Making application, supply of Government Acceptance Letter as a Student and having to leave Thailand to have it re-issued.

Get advice from your school for confirmation on exact time periods.

Hope this helps.

[philw]

And of course you know what you intend doing from thaioland , ie Skype /email technically constitutes working in thailand therefore you need a work permit, further how can you legally invoice a company in the UK as an external contractor when you don't have an external company ?.....HM revenue service is not daft !

Er.....

Consultant.

Royalties.

Commissions.

Professional fees, overseas sole trader.

Girlfriends name.

Form a HK reinvoicing company.

etc etc etc........

Skype requires a work permit ???

Oh dear..........

[wym]

Don't listen to any nonsense about being taxable in Thailand, in practice that's <deleted> although of course in theory technically true.

Just be discreet, don't open yourself to blackmail by locals (including local expats), you've taken early retirement and are living off investments is all.

And I'd strongly advise getting your financial and tax advice from people you find through back-home connections, avoid anything coming via this part of the world.

[hickpaul]

Thanks for all the great advise so far guys - really appreciated.

Jon - some really good info in your post, gives me plenty of food for thought.

Phil - sounds interesting - how exactly would you approach it?

Wym - would blackmail from ex-pats and locals really happen? that said, my post is genuine and I will literally be living off of seeds planted over the last 10 years.

Thanks again everyone

[nickmanchester2]

And of course you know what you intend doing from thaioland , ie Skype /email technically constitutes working in thailand therefore you need a work permit, further how can you legally invoice a company in the UK as an external contractor when you don't have an external company ?.....HM revenue service is not daft !

Er.....

Consultant.

Royalties.

Commissions.

Professional fees, overseas sole trader.

Girlfriends name.

Form a HK reinvoicing company.

etc etc etc........

Skype requires a work permit ???

Oh dear..........

better let all the sole trader tourists know who come for 3 weeks holidays to not to check company emails as well