Advice on UK contracting using offshore company with UK agency agreement
Hi,
My first post here although I have been contracting in excess of 10 years.
I contract as a single person using a limited company, I charge a day rate for IT consultancy services and have no other products or sales.
Up to now I have always taken the UK limited company route, however recently I have been contemplating offshore to releive my tax burden which has substantially increased over the past 18 months due to large rate increases in my sector. Having had a quick search on the internet I was contacted by a company who suggested the following.
Incorporation in Belize
nominee director
power of attorney
nominee shareholder
Putting in place a UK agency agreement between the UK compny and the one in belize.
I am interested in anyones experience of doing this, basically my UK company would be declaring in its accounts turnover of just the 5% cut of the day rate as a fee and then passing all other monies to the company in belize as stated in the contract.
I have very little understanding of offshore so before I go handing over money and putting anything into place I want to ensure I am not falling into some kind of common trap.
If anyone has done this did you set it all up yourself (i am very verse with setting up a uk limited ) is it just as easy to set up offshore or is it better to use one of the many companies who will do it for me ?
I want to avoid any loop hole schemes as I understand the new law introduced for anti avoidance, from what I can find on the method suggested everything would be abouve board and not using any schemes.
Thanks in advance for any advice or pointers.
Console
My first post here although I have been contracting in excess of 10 years.
I contract as a single person using a limited company, I charge a day rate for IT consultancy services and have no other products or sales.
Up to now I have always taken the UK limited company route, however recently I have been contemplating offshore to releive my tax burden which has substantially increased over the past 18 months due to large rate increases in my sector. Having had a quick search on the internet I was contacted by a company who suggested the following.
Incorporation in Belize
nominee director
power of attorney
nominee shareholder
Putting in place a UK agency agreement between the UK compny and the one in belize.
I am interested in anyones experience of doing this, basically my UK company would be declaring in its accounts turnover of just the 5% cut of the day rate as a fee and then passing all other monies to the company in belize as stated in the contract.
I have very little understanding of offshore so before I go handing over money and putting anything into place I want to ensure I am not falling into some kind of common trap.
If anyone has done this did you set it all up yourself (i am very verse with setting up a uk limited ) is it just as easy to set up offshore or is it better to use one of the many companies who will do it for me ?
I want to avoid any loop hole schemes as I understand the new law introduced for anti avoidance, from what I can find on the method suggested everything would be abouve board and not using any schemes.
Thanks in advance for any advice or pointers.
Console
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