Incurring cost in UK company

[GitMaster69]

I have 2 companies at the moment: contracting LTD in UK and second in European country. I have business plan in the EU one but in order to pull this off I need to incur tax deductible cost in UK and profit in the EU one (so I don’t pay profit tax in both)

my idea is to invoice my UK limited from EU and be done with it

Is it anything simple to do, and more importantly legal ?

[ladymuck]

So what you're saying is that you're going to create a false sale from your EU company to your UK company in order to make it have a loss. Yeah, doesn't sounds like every tax evasion scam at all.

[Fred Bloggs]

So what you're saying is that you're going to create a false sale from your EU company to your UK company in order to make it have a loss. Yeah, doesn't sounds like every tax evasion scam at all.

What could possibly go wrong?

[Lance]

the trick is to have one company own the IP. And the other company pays for use of the IP.

Perfectly legal tax avoidance (CAVEAT: legal does not mean you won't get shafted by HMRC. Bono does it. Can you afford Bono's lawyers?)

[GitMaster69]

I actually have something IPeable (a software I wrote a while back )
will look at it thanks

[northernladuk]

I actually have something IPeable (a software I wrote a while back )
will look at it thanks

So you are going to use a questionable IP on software you wrote ages ago to faciliate tax evasion and fraud?

[GitMaster69]

No I’m looking to pay tax once, not twice on the same money, so get lost idiot with your useless typical attacks

if I wanted to avoid tax I’d open on Caribbean’s

[NotAllThere]

Why would you pay tax twice?

[GitMaster69]

I need to generate income in the European company , to show profit at the end of tax year and be eligible for loans/mortgages to fund growth

Rates are same so wouldn’t save on tax

[WTFH]

I need to generate income in the European company , to show profit at the end of tax year and be eligible for loans/mortgages to fund growth

Rates are same so wouldn’t save on tax

Will the UK company then be posting a loss, or greatly reduced profits as a result of shifting the money from one to the other?

You say you won't save on tax, but in your first post you said it was to "incur a tax deductible cost in UK"