Working out of India for UK company from 1 Jan 2016 on contract
Work under UK umbrella company.  By this you are thinking of creating a new legal entity in UK, then its not a very great idea. There will be lot of paperwork, additional taxes in UK and not much benefit.  Ask UK company to remit money to Indian savings bank account   Ask UK company to remit money to Indian business bank account Both are same from tax point of view. Opening a business bank account needs some more paper work and can be avoided.  Note as an independent contractor you are still liable to pay taxes in India. Please pay periodically and in advance and do not wait till year end. You can claim some benefits as work related expenses [for example a laptop / mobile purchase, certain other expenses] and reduce from the total income the UK company is paying
"This is the best tl;dr I could make, [original](http://www.bbc.co.uk/news/business-40642152) reduced by 45%. (I'm a bot) ***** &gt; Growth in UK house prices has continued to slow, but the cost of the average home still increased by 4.7% in the year to May 2017.  &gt; The main contribution to the rise in house prices came from England, where prices jumped by 5%. The average price of a house in England is now &amp;pound;238,000, the ONS said, while a property in Wales costs &amp;pound;150,000 after a 3.8% increase in prices over the past 12 months.  &gt; Within England, the smallest price rise in the year to May was seen in the North East, up 1.6%, while London had the second lowest price rise of 3%. The highest price rise was 7.5% in the East, just ahead of the East Midlands where property values went up by 7.2%. &amp;quot;Richard Snook, senior economist at business services company PwC, said:&amp;quot;The figures are in line with our expectations that growth in 2017 will be around half that of 2016.   ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6o284h/house_price_growth_continues_to_slow_in_uk/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ ""Version 1.65, ~169772 tl;drs so far."") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr ""PM's and comments are monitored, constructive feedback is welcome."") | *Top* *keywords*: **price**^#1 **house**^#2 **year**^#3 **rise**^#4 **average**^#5" "No.  The more legs you add onto your trade, the more commissions you will pay entering and exiting the trade and the more opportunity for slippage.  So lets head the other direction.   Can we make a simple, risk-free option trade, with as few legs as possible? The (not really) surprising answer is ""yes"", but there is no free lunch, as you will see.  According to financial theory any riskless position will earn the risk free rate, which right now is almost nothing, nada, 0%.   Let's test this out with a little example. In theory, a riskless position can be constructed from buying a stock, selling a call option, and buying a put option.  This combination should earn the risk free rate. Selling the call option means you get money now but agree to let someone else have the stock at an agreed contract price if the price goes up.  Buying the put option means you pay money now but can sell the stock to someone at a pre-agreed contract price if you want to do so, which would only be when the price declines below the contract price.  To start our risk free trade, buy Google stock, GOOG, at the Oct 3 Close:   495.52 x 100sh = $49,552 The example has 100 shares for compatibility with the options contracts which require 100 share blocks. we will sell a call and buy a put @ contract price of $500 for Jan 19,2013.   Therefore we will receive $50,000 for certain on Jan 19,2013, unless the options clearing system fails, because of say, global financial collapse, or war with Aztec spacecraft. According to google finance, if we had sold a call today at the close we would receive the bid, which is 89.00/share, or $8,900 total.  And if we had bought a put today at the close we would pay the ask, which is 91.90/share, or $9190 total. So, to receive $50,000 for certain on Jan 19,2013 we could pay $49,552 for the GOOG stock, minus $8,900 for the money we received selling the call option, plus a payment of $9190 for the put option we need to protect the value.  The total is $49,842.   If we pay $49,842 today, plus execute the option strategy shown, we would have $50,000 on Jan 19,2013.  This is a profit of $158, the options commissions are going to be around $20-$30, so in total the profit is around $120 after commissions.   On the other hand, ~$50,000 in a bank CD for 12 months at 1.1% will yield $550 in similarly risk-free interest.   Given that it is difficult to actually make these trades simultaneously, in practice, with the prices jumping all around, I would say if you really want a low risk option trade then a bank CD looks like the safer bet.  This isn't to say you can't find another combination of stock and contract price that does better than a bank CD -- but I doubt it will ever be better by very much and still difficult to monitor and align the trades in practice." Transferwise gives an excellent exchange rate and very minimal costs. They save on costs by not actually changing any money; your money goes to someone else in the US, and the Canadia dollars you want come from someone else in Canada. No money changes currency or crosses borders, there is no bank transfer fee (assuming that domestic bank transfers, inside the country, are free), and they give an excellent exchange rate (very nearly the spot rate, I find; far better than many rates I find online for sending money across the border).  I sent money from the UK to Japan with it last week, at a fixed fee of about three US dollars (I was charged in GBP, obviously). About one tenth the cost of an international bank transfer. I just double-checked; at about midday on the fifth of October 2016, they gave me a rate of 130.15 JPY per 1 GBP, and then charged me two GBP to transfer the money. The rate that day, according to xe.com, varied between 130.7 and 132 ; basically, I don't think I could have got a better deal pretty much anywhere. As I type, this very second, they offer 1.33 CAD for 1 USD , and google tells me that this very second, the exchange rate is 1.33 CAD for 1 USD - transferwise is giving the spot price. I don't think you'll get a better rate anywhere else. By earning money, I assume you are being paid a salary [and not allowance] in UK.  For the Financial Year 2013-2014: You are still a tax resident in India. India taxes Global income. Hence your salary from 4th Feb to 31st March, needs to be declared as Income. The tax will be at your total tax brackets. India does have a Double Tax Avoidance Treaty [DTAA] with UK, so you can deduct any taxes you paid on this income and pay balance in India.  Please note that it is not relevant whether you transfer money to India or keep in UK, it does not change the taxability. For the financial Year 2014-2015: Depending on the exact date, you may or may not be a NRI [away for more than 182 days] for tax purposes. If you are an NRI there no tax, else as above para. I love the flat rate VAT scheme. It's where you pay a percentage based on your industry. An example might be Computer repair services, where you'll pay 10.5% of your total revenue to the HMRC. But you'll be invoicing for VAT at 20% still. Would definitely recommend registering for it since you're expecting to cross the threshold anyway. And like DumbCoder said, you also get a first year discount of 1%, so in the example above, you'd end up paying 9.5% VAT on your turnover. I personally found it a pain to invoice without VAT (my clients expected it), so registering made sense regardless of the fact I was over threshold. The tricky bit is keeping under the £150k turnover so you stay eligible for the flat rate. It does get more complex otherwise. This taxation guide may be helpful in sorting out some of your questions.  I'm not entirely versatile with UK tax, so my answer will stay broad.  I think the answer may be to consult a professional advisor. You may become non-resident but remain UK domiciled.  Everybody has exactly one domicile and it is essentially their permanent home (the place where they intend to one day return and live.  The test is based on your intent - do you intend to return to the UK or do you intend to make another land your permanent home?  Simply traveling about the world will not establish a new domicile for you.  So you may owe some taxes on your worldwide income or capital gains while a UK-domiciled non-resident, as suggested here. If it helps, the UK tax residence rules are listed by HMRC online.  If your business is a corporation, there's a different analysis.  You may also want to refer to the UK-BVI tax treaty.  HMRC offers a tax residence calculator to help sort your residence, if you plan to return often. Assuming you are looking at moving your earnings when your tax status in India was NRI; then there are no taxes to be paid when you transfer the money back to India. You can move the funds back to India over a period of 7 years from the day you land. "As you clarified in the comments, it is not a contract work but rather an additional temporary assignment with the same employer. You were paid for it in form of a ""bonus"" - one time irregular payment, instead of regular periodic payments. Irregular wage payments fall under the flat rate withholding rule (the 25% for Federal, some States have similar rules for State withholding). This is not taxes, this is withholding. Withholding is money the employer takes from your salary and forwards to the IRS on the account of your tax liability, but it is not in itself your tax liability. When you do your annual tax return, you'll calculate the actual tax you were supposed to pay, and the difference between what was withheld and your actual tax will be refunded to you (or owed by you, if not enough was withheld). You can control the regular pay withholding using W4 form."