Can I be paid into an offshore bank account?
Offshore taxation issues
The actual location of your bank account is largely irrelevant, whether offshore or in-country. It is not an issue for employers to pay into offshore bank accounts but more whether correct payroll taxes and social security deductions have been paid before the net salary is paid to the bank account.
Generally offshore bank accounts have been used in the past to shield money from taxes, although with the recent European savings directive this has now been closed off in most circumstances.
Most contractors will find that agencies will now refuse to pay to offshore bank accounts due to these directives from HMRC. However, if an individual is considered UK non-domiciled, then receiving funds outside of the UK could be tax advantageous under the remittance regulations.
Accordingly, you need to ensure that you take correct tax advice before putting in place any solution where these regulations apply. Please contact our specialists for more information.