Thanks for the prompt replies.
I undertstand the idea behind me persoanlly having control of the company, this is why they suggest using nominees and a power of atorney so on paper and legally I have no controll or association wih the offshore company. That company runs legally in its own duristriction and has a UK agent agreement with the Company owned by me in the UK
As for a company dealing with me, they are still dealing with a UK limited company owned by myself so the UK facing side is absolutly no different to it is now, I will be the sole director and shareholder, accounts will be submitted and taxes paid on turnover ( the 5 % fee).
In effect I will be working for my own UK company collecting a fee for an offshore company that is not legally connected to me or under my control.
As I understood it I would have to have UK agency contracts in place between the two companies.
Would I be correct in thinking that HMRC has no power over incorporations in other countries, as in there would be no way for them to contact the offshore and demand that anything were handed over ? (in any case if nothing were given what can they do )
It would seem on paper compliant as the taxation would be due only in the offshore destination (0 percent in this case). My UK accounts would be submitted and taxation paid on the companies turnover (the 5 percent fee).
Does the law also stand with HMRC that you do not have to say anything that will incriminate yourself. ie: They can not force me to disclose anything about a company that I dont own ?
Has anyone here gone through the process of a UK agency agreement with an offshore company ?
It may be difficult but then again the law states that as a UK limited director I am obliged to do what is right for the UK company, which in this case would be securing a long term contract with an overseas client and collecting a fee.
I have no fear of answering HMRC questions as I am verse to them banging on my front door on a saturday morning, I used to use the aggressive method of submitting no returns and letting companies house close the company down however this method has now sadly died.
Thanks for the responses so far.
I undertstand the idea behind me persoanlly having control of the company, this is why they suggest using nominees and a power of atorney so on paper and legally I have no controll or association wih the offshore company. That company runs legally in its own duristriction and has a UK agent agreement with the Company owned by me in the UK
As for a company dealing with me, they are still dealing with a UK limited company owned by myself so the UK facing side is absolutly no different to it is now, I will be the sole director and shareholder, accounts will be submitted and taxes paid on turnover ( the 5 % fee).
In effect I will be working for my own UK company collecting a fee for an offshore company that is not legally connected to me or under my control.
As I understood it I would have to have UK agency contracts in place between the two companies.
Would I be correct in thinking that HMRC has no power over incorporations in other countries, as in there would be no way for them to contact the offshore and demand that anything were handed over ? (in any case if nothing were given what can they do )
It would seem on paper compliant as the taxation would be due only in the offshore destination (0 percent in this case). My UK accounts would be submitted and taxation paid on the companies turnover (the 5 percent fee).
Does the law also stand with HMRC that you do not have to say anything that will incriminate yourself. ie: They can not force me to disclose anything about a company that I dont own ?
Has anyone here gone through the process of a UK agency agreement with an offshore company ?
It may be difficult but then again the law states that as a UK limited director I am obliged to do what is right for the UK company, which in this case would be securing a long term contract with an overseas client and collecting a fee.
I have no fear of answering HMRC questions as I am verse to them banging on my front door on a saturday morning, I used to use the aggressive method of submitting no returns and letting companies house close the company down however this method has now sadly died.
Thanks for the responses so far.
Comment