A model of the world preparing for the future

Dolores is a fashion model from Spain and has been in the modelling industry since the tender age of eighteen. Seven years on in the fashion business, she is now 25 years old and living in London. Dolores travels to and from photo shoots throughout the world 10 to 15 days out of every month. The rest of the time she spends in London.

Notting Hill office

Dolores has recently bought a house in Notting Hill, as prices have went down significantly. There she has a small office in the basement. Dolores has a company called 'Dolores', which employs a a marketing specialist, a secretary as well Dolores herself  All of them are based at her Notting Hill office.

New venture and staff

As a new venture Dolores wants to set up a company that sells beauty and fashion products over the internet. She has therefore employed the marketing specialist to add creative input to this project, her secretary maintains Dolores’ agenda, diary and travel bookings etc.

Dolores' Non-Dom situation

What is significant about Dolores' situation is that:-

  • She is a foreigner to the UK
  • She lives in London
  • She makes a lot of money overseas

The total income that Dolores generates per year is £500,000. Two thirds of this income is generated outside the UK. As long as she does not remit those funds back to the UK, that money is not taxable in the UK.

It may be that Dolores has to tax it in another country, but as long as she doesn’t remit it back to the UK, it is essentially tax free. While this works now it will only work for the first seven years that Dolores lives in the UK, after that it gets a little more complicated.

St Matthew eAccounting helped Dolores start up this module to optimise her taxes using the Non-Dom scheme.

The company called 'Dolores' in the UK

In order to help Dolores, St Matthew eAccounting set up a UK named company for Dolores, where she is a regular employee together with the other staff she employs. She receives a normal, yet substantial salary through the company, which allows her to maintain herself, pays for the mortgage and helps cover other everyday financial necessities.

Dolores by name

In addition to this she has been building a client base for all the work she does outside the UK directly with her own personal name, without using the company. All income generated here goes to an overseas expense account that she has in a different country. Obviously, none of this money is ever remitted back to the UK.

Dolores is considering leaving the UK in a number of years and to then take these funds to sustain her when her modelling career is over.

How we help Dolores

The services we provide for Dolores are essentially quite basic: accounting, bookkeeping, statutory services, and payroll for Dolores and the two employers, help with accountancy and any tax enquiries she might have. We help Dolores with her personal tax returns and deal with any enquiries from the revenue regards her personal income or the company's current situation

The Non-Dom consultancy was a much bigger project as we needed to make sure all of the legal aspects of her situation were absolutely right.  Specialised accountants helped come up with a solution to this problem which, as I'm sure Dolores agrees, is working very well.