CBN Global v ContractorUmbrella

[kal]

So your suggestion to the OP is instead of joining an umbrella or setting up a UK Ltd is to buy a villa in Bulgaria, obtain Bulgarian citizenship, set up a Bulgarian company, try and work around tax residency rules and attempt to persuade agencies to work with an overseas registered company?

Hardly a zero hassle solution is it?

Priceless

[jbryce]

So your suggestion to the OP is instead of joining an umbrella or setting up a UK Ltd is to buy a villa in Bulgaria, obtain Bulgarian citizenship, set up a Bulgarian company, try and work around tax residency rules and attempt to persuade agencies to work with an overseas registered company?

Hardly a zero hassle solution is it?

Admin types - you should put all of these sort of threads into the HMRC Scheme Enquiries bucket - that way readers will see the pain instantly.

[ASB]

A few years ago I bought a cheap Villa in Bulgaria and registered myself there as a citizen, I opened a company there and my tax liability is 10% corporation tax and 10% income tax, this is fully legal within the EU

You are right. That is entirely legal.

But it doesn't stop the individual becoming UK tax resident, in which case their income needs declaring in the same way as anybody else who is UK resident.

It also generally follows that the company will also become UK resident (despite being Bulgarian) and taxed accordingly.

So, entirely legal. But entirely ineffective if complying with the regulations (not complying is not generally a criminal matter - but it can be).

Of course if and when the HMRC catch up, which will be very shortly after any compliance review any where in the chain, then there will be a modicum of pain involved. And if they do decide it was criminal evasion - which is entirely possible - very severe pain.

[ITGirl1978]

Thanks

The thread went off on a bit of a tangent here it seems!

anyway thanks for all your help, I have now setup my own Ltd Company.

I have been chased a lot by them though to use them, whereas ContractorUmbrella haven't chased me at all. This says a lot to me and I am happy with the decision I made.

It is a shame they are able to promote this to people in the way that they do.

[BlasterBates]

A few years ago I bought a cheap Villa in Bulgaria and registered myself there as a citizen, I opened a company there and my tax liability is 10% corporation tax and 10% income tax, this is fully legal within the EU

This is perfectly OK if the Bulgarian company is doing business in Bulgaria. and you are returning to Bulgaria every weekend.

But then this isn't relevant for any UK contractor earning in the UK. What you can't do is set up a Bulgarian company and carry out a UK contract without having it taxed in the UK.

[DiscoStu]

The thread went off on a bit of a tangent here it seems!

anyway thanks for all your help, I have now setup my own Ltd Company.

I have been chased a lot by them though to use them, whereas ContractorUmbrella haven't chased me at all. This says a lot to me and I am happy with the decision I made.

It is a shame they are able to promote this to people in the way that they do.

Glad you made a sensible choice! (Sure you weren't slightly tempted by the Bulgarian villa? )

[ITGirl1978]

Glad you made a sensible choice! (Sure you weren't slightly tempted by the Bulgarian villa? )

heehee no I think I am better off avoiding the Bulgarian Villa and CBN Global!

[kal]

The thread went off on a bit of a tangent here it seems!

anyway thanks for all your help, I have now setup my own Ltd Company.

I have been chased a lot by them though to use them, whereas ContractorUmbrella haven't chased me at all. This says a lot to me and I am happy with the decision I made.

It is a shame they are able to promote this to people in the way that they do.

Good decision, the best choice in the long run, once of the main reasons I went Ltd (apart from it being more tax efficient) is that it's one less link in the chain holding onto my money, the less links in the chain the less chance of my hard earned cash disappearing in a puff of smoke