to think this smacks of tax avoidance?

[user1489567377]

so wise mumsnetters tell me the hole in this

friends child age 21 joint UK/NZ passport holder (lives in NZ)

coming to work in Greece for 6 months

apparently needs to be paid in the UK to a UK bank account

she doesn't have an account can't open one

we were asked to 'receive' the money for her and have said no

but surely she should be paid in Greece so she can pay Greek tax?

I'm thinking that the company is trying to benefit in some way, I'm not sure what? avoiding paperwork, paying a lower salary, avoiding Greek tax, is there a Greek NI/PAYE?

I have told them this (from the angle that they need to make sure their 21 yr old daughter is fulfilling her tax obligations because she is liable and doesn't want to end up in prison somewhere she speaks none of the language) but I'm being criticised and told I'm wrong

apparently you pay tax through your employer's domicile - so if you work for a foreign company no UK tax payable well I never.

Am I wrong?
surely she has Greek tax liability and no UK tax liability and an attempt to pay her in the UK is tax fraud?

Have I been thinking all this time that employees of Amazon and Starbucks and a whole heap of other companies are on PAYE like us fools but the reality is no one apart from PAYE is actually paying tax?

Maybe the employer just needs to pay the wages into an EU bank account and since this young woman has a British passport which enables her to work in the EU she has to have her money paid into an EU bank account - her family have just decided it should be British as they have no connections with any other European country.

Disclaimer - my thoughts only, no knowledge of the subject.

It depends on how long the contract is and how long you are there as to where your tax liability. As someone who being paid in the UK but working in Germany four days a week I only become liable for German tax once I have broken a certain threshold of number of days in Germany. (I think it was 180 but don't quote me on that, the company tax accountants deal with it not me. I just fill out unending forms and they work out my liability) even then the liability is spilt so I paid some tax in the UK and some in Germany. I believe that this is the set up for all European Union countries so Greece should be similar.

thanks for all the helpful posts guys

I thought everyone was talking rubbish but you know when you are having one of those conversations and everyone else insists you are wrong it can make you doubt yourself!

What's the paying of tax got to do with the fact that her Net salary is paid into a bank account?
The two are completely un-related. Your objection is questionable.

If you don't want to do it fine. Tax avoidance is completely legal.

If it is a contract position and they are working for a uk agency but the contract is in based Greece then they are technically working for the agency, and should declare the income in the uk and pay taxes in the U.K. (Not necessarily income tax).

I'd not accept the money for them but I might let them use my address to get their NI number and a bank account set up.
Seems like they are taking the job as an eu national but expecting to be non dom for tax.

So tell the people who think you should be 'helping' her to offer their own bank accounts.

Their lookout.

People who are honest often find it a bit incomprehensible that other people are dishonest. So think you ought to 'help'.

I am glad you said 'No'.

If the company want to put her pay into a UK bank account, they should be asked to facilitate getting her one set up. At that point they will either solve the problem or realise that a different solution is needed.

Don't do it. This has red flags all over it, even if it is 'innocent'.

Money laundering rules should be your number one concern before the tax implications.

Then, if you are asked to be in a situation 'for a friend' and you have to think about money laundering and tax risks, then you're really out of 'the favour' zone and they shouldn't be putting you in that position.

Sounds like she is working for a UK based company, but will ber based in Greece. She will therefore be paid in £ and into a UK bank account. But she cant get a bank account because she is not UK resident. Unfortunately for this job to work she will need to somehow get herself a Uk bank account or have the employer agree to pay her into a greek account or her NZ one.

it doesnt sound dodgy, I know loads of people who have worked on boats/yachts out of Greece for Uk companies and they get paid in £ into their uk accounts. Just is tricky for her because she has no UK account I guess.

I don't know anything about the situation you mention, but

Tax Avoidance is legal - sensible allowable steps taken to reduce tax burden. Accountants are helpful with this.

Tax Evasion is illegal - deliberately withholding financial information in order to reduce tax burden. Some accountants are prepared to help with this

thanks for all the comments guys
I wont be doing it

porpoise funnily enough I was reading about tax for boaties just the other day (absolutely no reason why though)

If she's only working for six months, depending on her salary she may not have to pay income tax.

However if it is UK tax she would be paying I would expect her income to be taken into account in NZ when she returns there as I would expect U.K. and NZ to have reciprocal agreements in place

I worked in Ireland (republic of) as a student, didn't earn enough in a summer to pay tax, moved to the uk got s job here. It ended up I owed a small amount of uk tax as my Irish income was taken into account. It was taken via an ammendment to my tax code the following year.