csdf

My wife gets paid in dirhams. I get paid in sterling. Is there anything (from a tax or legal perspective) to stop us acting as our own mini FX company? I.e. my wife gives me some dirhams from her UAE bank account and I pay her the equivalent amount (at the interbank rate of the day) in pounds into her UK bank account. It would make life a lot simpler.

The Dean

Sorry, I'm a bit slow today - I don't see the issue here.

I'm assuming you are both in the UAE, so surely you don't actually receive a salary in GBP? It's converted to AED at the prevailing rate, surely?

And do you have actual outgoings/expenses in both countries every month? And wouldn't a joint account make this simpler?

Give me a slap if I'm missing the point.

Millhouse

Do what you like. Make sure that you screw her on the spread though.

csdf

For various reasons, I receive a salary in GBP, no conversion. Though this means I take the FX risk, it also means that we ought to be able to arbitrage between my salary and my wife's salary, depending on exchange rates.
It's complicated: I have expenses in Abu Dhabi only; my wife has expenses in both countries. A joint account in AED wouldn't be particularly efficient as I would have to convert my salary from GBP to AED to pay into it; vice versa for my wife paying into a joint account in UKP.

Millhouse

I would say though just to be safe that you pay her into an offshore UK account if possible.