UK tax on salary paid into offshore account

The income tax liability on your salary and employment income does not usually depend on where it is paid, but rather on: - your residence status, and - the location of the duties If you are UK resident your salary will be taxed in the UK, irrespective of whether it is paid in the UK or in an offshore account. If you are non resident your salary earned overseas (ie for overseas duties) will be exempt from UK tax even if it is paid into a UK bank account. This is the general rule. There is though an exception: If you are UK resident but Non UK Domiciled you can claim the remittance basis for overseas salary income. As from April 2008 you will need to pay a £30,000 annual tax charge for the privilege of this. However if this was acceptable to you you'd need to ensure that: - the duties were performed solely overseas - the salary was paid and retained abroad - your employer was non UK resident This would therefore only be relevant post April 2008 where there was substantial unremitted overseas salary income.