UK Sole Trader paid into overseas company account

UK Sole Trader paid into overseas company account

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I have recently met with a new client, and was advising on how he provides income and expenses for his sole trade teaching business.  At the end, he advised that the income is paid into an overseas ltd company account that he had from when he lived overseas.

The client came to the UK 12 months ago, and, I presume, assumed he just could carry on what he was doing without seeking any advice.

Does anyone have any guidance - as from a UK point of view it is UK source income - and he is UK Resident, so I suspect the answer is to ignore the limited company, and tax it as a sole trader - but any help welcome!

 

Kind regards

Jonathan.

 

Replies (3)

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By Wanderer
02nd May 2023 17:50

This.

JonathanD wrote:

tax it as a sole trader

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Caroline
By accountantccole
03rd May 2023 12:26

Who does the end customer think they are trading with?
It might not be as simple as tax it as a sole trade if the client paid into the co account believing a company was the supplier, that company is likely to have UK issues

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Replying to accountantccole:
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By JonathanD
05th May 2023 08:52

the client is a music teacher, so I would imagine they would think they are contracting with the individual, rather than an overseas company. I suspect it would have been to do with not having a UK bank account at the time, so felt more convenient. They are now employed, so this is only an issue for 8 months.

Thank you!

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