UK resident, 100% earnings via Bitcoin: Need a tax free banking solution

[Scanman]

Hello Mentor Group. I really hope someone here can help me!

I currently earn around £10,000 per month, 100% of it in Bitcoin, which I have been cashing out to UK personal current accounts via localbitcoins and via debit card to cash for the past 3 years. I now have WAY too much cash on hand, and too many personal UK bank accounts at their maximum insured limit, and badly need a new safe and sustainable solution for storing my earnings tax free (safely) which is why I am here for help.

The business is 100% legal, internet based services (not physical goods) and also from trading in cryptos. My net worth is around £450k. I have not formed a company or kept any accounts thus far, and I have no previous business experience (ex wage slave!).

I am a UK resident from an EU country which I have never lived in, and I am not registered with any tax authorities here or in my country of citizenship/nationality which I believe is an advantage.

My main points of concern/interest are:

I will continue to earn rapidly in Bitcoin which I do not believe is a wise place to store assets due to it's value fluctuation, and so will immediately convert it to FIAT using an exchange or EMI. I then need a place to BANK/store that FIAT that is safe, reliable and accessible, and not subject to taxation. I do not believe and EMI is a safe place to hold 6-7 figures for the long term though I could use them to convert Bitcoin to fiat and transfer out to a real bank.

I would like to be able to use my earnings either currently held in my UK banks, or future earnings that go offshore or held by an offshore company to buy, and hold property and a vehicle in the UK if possible. Ideally I would like assets to be held by an offshore entity and to never declare an income or taxable assets here.

I would also like to get some of the funds I hold in my UK personal accounts out in order to protect them should the tax man come calling, but this is a secondary issue. I have enough cash to live comfortably if I just sit on it now, but further earnings cannot continue to accumulate this way.

So ( tldr; ), can someone recommend a structure that will allow me to put my Bitcoin earnings somewhere safe in Fiat and avoid tax on it and use it to purchase assets in the UK?

Thanks in advance!

Scanman

 

[Clay]

While this doesn't solve all of your problems, it could help you convert at least some of your BTC to cash. Xapo - Bitcoin Wallet & Vault has a bitcoin debit card that lets you withdraw cash from ATMs or spend it anywhere else. I'm sure you could setup an account there with DARKS from @auric

 

[Scanman]

Am I asking the wrong questions here, or is the forum just dead?, and I wasted £95? It says a reply from an advisor within 12 hours...

Perhaps I will re-phase simply:

1. Where is best to consolidate my profits from Bitcoin to Fiat so that they are not subject to taxation, and my large amount of money remains safe, secure.
2. If I wanted to use that money to to purchase and hold a UK residential property, how would I best structure companies/trusts do do that
3. How best to move funds form UK personal accounts to the new structure without setting off alarms?

Thank You.

 

[Scanman]

Clay said:
While this doesn't solve all of your problems, it could help you convert at least some of your BTC to cash. Xapo - Bitcoin Wallet & Vault has a bitcoin debit card that lets you withdraw cash from ATMs or spend it anywhere else. I'm sure you could setup an account there with DARKS from @auric
Click to expand...

As I mentioned in my first post I have entirely too much cash on hand from doing exactly this. I have a half dozen Bitcoin ATM cards in various names. It's getting that I'm afraid to go on holidays with £100k sitting in my home safe - and good luck spending anything over £10k cash in the UK. Need a storage solution and a way to spend it.

Thanks anyway.

 

[eliquid2]

I can't answer your direct questions @Scanman , but I wonder if it is possible to talk to you and ask you some questions?

 

[Scanman]

Oh course mate, feel free to PM me.

 

[negon]

You may simple setup a AdvCash account with Darks. transfer bitcoins to this account and cash out with the debit card you receive from them! pretty easy to do. You can also buy bitcoins with AdvCash at the moment we speak. It's not that difficult.

If you need to transfer crypto currency to your normal bank account and you bank does not allow it you simply use transferwise for the transaction.

 

[Clay]

auric said:
You may simple setup a AdvCash account with Darks. transfer bitcoins to this account and cash out with the debit card you receive from them! pretty easy to do. You can also buy bitcoins with AdvCash at the moment we speak. It's not that difficult.

If you need to transfer crypto currency to your normal bank account and you bank does not allow it you simply use transferwise for the transaction.
Click to expand...

That still doesn't solve his problem. Don't worry, I made the same mistake from not reading his post thoroughly. Sorry @Scanman

He wants to transfer crypto to fiat, avoid paying taxes on it, and wants to be able to use this money to purchase assets in the UK. From doing a bit of Google fu the UK does not currently require real estate owned by offshore companies to register with the government in any way, although they are working to change this. You could simply setup an offshore company and purchase property through you'd still need to pay property tax. You won't need to pay capital gains tax unless the property exceeds £500k for residential. You shouldn't have to pay capital gains tax on any commercial property.

I think the best option for you would be to contact a tax attorney.

 

[Scanman]

@Clay : Thank you for actually reading my post. Yes an offshore company and account seems the way forward as far as purchasing property. The question remains as to the structure of the company, and how best to funnel money to its accounts from Bitcoin, and ideally from my existing holdings of cash and bank balances in the UK to that company.

I think this is probably far too slippery for a tax attorney, they do have a duty to report such things to the HMRC I imagine.

 

[Clay]

Do you have a company that's currently registered in the UK or are you holding cash in personal accounts?

 

[Scanman]

All personal accounts...