using an offshore company ?

[The Lone Gunman]

This tw@t just isn't going to listen.

I hate his sort. Comes and asks for advice then ignores it or thinks he knows better. Fook him.

[ASB]

"2. There is no flat TAX rate in the "offshore heaven" for companies operating outside the offshore zone."



It should take you no more than a minute to discover that is rubbish. Heres a starter:- http://ozannes.com/about_the_channel_islands.asp

In the CI - specifically Jersey the fee used to be £500 GBP per year, but I imagine it is different now. It was the same with non resident companies in Gib. Some places I am sure will charge less. Some will charge more.

[Edit: bacause I originally mentioned the Caymans I looked it up. Their equivalent is $575 USD. Plus some other bits and pieces. I don't know if the certificate of tax exemption needs to be renewed annually or only on incorporation, if it does it's another $185. Granted these are not necessarily called "tax". The general mechanism is apply for tax-exempt status in exchange for an annual fee. ISTR that in Guernsey they actually called these "corporation tax companies" about 20 years ago].

[lith]

This tw@t just isn't going to listen.

I hate his sort. Comes and asks for advice then ignores it or thinks he knows better. Fook him.

Er which particular "tw@t" are you referring to?

[BlasterBates]

Companies who do business in the UK, regardless of where they are registered eg S.A. in Spain, GmbH in Germany need to register in the UK for tax purposes.

Thus yes you can use offshore companies but because you'll be working in the UK for more than 6 months, then that company needs to register with the Inland Revenue for their business in the UK.

[lith]

Companies who do business in the UK, regardless of where they are registered eg S.A. in Spain, GmbH in Germany need to register in the UK for tax purposes.

Thus yes you can use offshore companies but because you'll be working in the UK for more than 6 months, then that company needs to register with the Inland Revenue for their business in the UK.

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

[The Lone Gunman]

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

I wasnt calling you a tw@t, well no tyet anyways so less of the smart arse stuff right back at you. (That is meant to be a joke so dont get het up).

Happy to give advice if you are listening, there are plenty on here who will correct false advice.

Registering: Not sure if you would "have" to register the company, but as far as HMRC are concerned your Ltd is tax resident if you are. Asuming a 1 man Ltd.

Outsourcing: The customer may be UK, but the company doing the work is in India so the company will be tax resident in India. They may have a sales team in the UK who will be paying personal tax in the UK.

A little reading may be in order but dont be afraid to ask. Try HMRC web site for tax advice, the PCG and Shout99 far alternative contractor viewpoints.

[2uk]

"2. There is no flat TAX rate in the "offshore heaven" for companies operating outside the offshore zone."



It should take you no more than a minute to discover that is rubbish. Heres a starter:- http://ozannes.com/about_the_channel_islands.asp

In the CI - specifically Jersey the fee used to be £500 GBP per year, but I imagine it is different now. It was the same with non resident companies in Gib. Some places I am sure will charge less. Some will charge more.

[Edit: bacause I originally mentioned the Caymans I looked it up. Their equivalent is $575 USD. Plus some other bits and pieces. I don't know if the certificate of tax exemption needs to be renewed annually or only on incorporation, if it does it's another $185. Granted these are not necessarily called "tax". The general mechanism is apply for tax-exempt status in exchange for an annual fee. ISTR that in Guernsey they actually called these "corporation tax companies" about 20 years ago].

Yes ASB there are some fes but they are just that - fixed fees and not a PERCENTAGE of your earnings.

[2uk]

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

I dont know if India has low taxes , but they oursource there becaues of the cheap labor mainly.

[2uk]

If there were legitimate" holes in the system don't you think that every man and his dog would be using it. And not just every UK man and dog, every German, French, Italian etc etc.

tim

Do you think Perl Harbor was an "Internal Job" ?

ps " not sure bout the spelling"

[ASB]

Yes ASB there are some fes but they are just that - fixed fees and not a PERCENTAGE of your earnings.

I never said they were a percentage. You chose to infer that. What I actually wrote was "flat tax" because this is how they were (and often still are) described (e.g. you pay an annual flat tax of "x" in exchange for exemption).