Hello,
I am really confused about this one. When we are getting back the tax money under the Overseas Workday Relief, it is transferred to a non-domiciled account (e.g Expat account) in GBP.
To exchange this money to EUR for instance, which is the country of residency, it first has to go through a GBP account which might be domiciled in the UK which will then transfer it into Euro:
- Doing a transfer through Transferwise or Revolut or any other FX platform
Would that step be a problem? The alternative would be to use the bank which received it but they charge a horrendous 4% fee.
Thanks!
Replies (8)
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Did you get any clarity on this? I stumbled upon your post looking for the same answer and cannot find anything useful.. thanks!
Did you get any clarity on this? I stumbled upon your post looking for the same answer and cannot find anything useful.. thanks!
Reasons for no responses in 3 years?
1. OP is poorly worded, so neither scenario nor question are clear;
2. Inter-bank transfers & commissions are not accounting questions.
The topic reads very clear to me actually.
Question is as follows:
- in order to benefit from Overseas Workday Relief you must NOT remit the funds linked to overseas work in UK
- if you want to transfer those funds abroad in a different currency (e.g. EUR) you have two options: 1) you just transfer them to a EUR bank that will apply a very high commission for exchanging or 2) you have them transit from platforms such as Revolut that will apply a more competitive fee, or none
- Revolut is based in Lithuania, so a transfer to Lithuania should not count as remitting money to UK…. BUT.. and here comes the question
- To exchange the money from GBP to EUR Revolut will likely use a GBP correspondent banking account in UK first.
So question is: is a transfer to Lithuania (the example) in GBP equal to remitting money in UK if such a Lithuanian bank useS a GBP corresponding account in UK?
Very subtle you see, because you would assume when you send money somewhere non-UK that those money are not remitted
As mud.
So what makes it an Accounting question?
Its still very clear no-one has answered since it was asked.
It’s a difficult question. You wouldn’t expect many people to know the answer. Hopefully someone does!
You've described the scenario and question much more clearly than did OP ... but the issue remains that it's neither a difficult question nor a simple one - just the wrong audience of whom to be asking it.
One of the most basic rules for the receiving account to be deemed a qualifying account for the scheme is that it "must be a checking or deposit account".
However I've no idea (and as I said it isn't an accounting question) as to whether, for instance, Revolut consider their card account to be either of those types of account - and more importantly what HMRC's opinion would be on the matter.
Good luck with the research ... but that means you need to ask the right people!
[Alternatively you could ask one of the expensive experts - as per https://www.pwc.co.uk/assets/pdf/overseas-workday-relief-english-2014.pdf ]
I dont think its a difficult question.
But you didnt answer mine as to why you think its an Accounting question? So just to clarify, its not.