A bit of work for a company in the Cayman Islands

[icemancomeths]

I have been contracting for 5 years, mainly in the south of England. I have been offered 6 months work for a company in the Cayman Islands.

I have absolutely no experience of the rules and regs and I am finding it difficult to find any guidance.

Is it as simple as my uk ltd company receives payment, I then pay corporation tax on that etc? Do people even actually do this kind if thing.

To confirm - the work will be done remotely from the UK.

Thanks

[Lance]

I would guess that as you'll be in the UK as long as you pay UK tax you'll be OK.
Cayman Island is a British Overseas Territory and tax haven, so I would imagine that the client understands the CI tax obligations and will have that covered.

IANAITL

[radish2008]

I have a friend who works in the CI as a permie.

He said it is very, very expensive. And they prefer single persons, not couples with kids etc.

[m0n1k3r]

I have been contracting for 5 years, mainly in the south of England. I have been offered 6 months work for a company in the Cayman Islands.

I have absolutely no experience of the rules and regs and I am finding it difficult to find any guidance.

Is it as simple as my uk ltd company receives payment, I then pay corporation tax on that etc? Do people even actually do this kind if thing.

You send an invoice as usual but without VAT (the CI is outside the scope of VAT) and receive payment. You then pay corporation tax etc on it, but there will be no VAT to report.

[jamesbrown]

You send an invoice as usual but without VAT (the CI is outside the scope of VAT) and receive payment. You then pay corporation tax etc on it, but there will be no VAT to report.

At the risk of being pedantic, I think you mean that there will be a report of no VAT being due. Supplies that are outside of the scope of UK VAT are still reported in Box 6 unless you're on the FRS (this causes much confusion). Also, to be precise, whether something is outside of the scope of VAT doesn't simply depend on the location, but on the nature of the supply, i.e. B2B, B2C etc. (hence, "place of supply" rules).

To the OP, it's pretty straightforward to supply clients outside the UK. Your tax position doesn't change, because you and YourCo remain UK resident. Other than VAT, bear in mind the FX accounting (currency loss/gain) if you're not dealing in GBP and that your business insurances (notably PI) may be invalid for CI. Also, bear in mind that UK banks may be a little wary of payments received from notable tax havens. It doesn't take much to have a bank account flagged nowadays.