Avoid the rules and get an offshore?

[quakersboy]

Avoid the rules and get an offshore?

You have to be very very careful with offshore schemes - apparently they must comply with the 1950's Ramsey judgement. I only know of one that does comply - and I am in it. All worked very well so far.

...and would be prepared to recommend and name said company?

[florida]

How about uk residents domiciled elsewhere?

Granted this service sounds too good to be true.

I'm just wondering, however, if such a service isn't useful if you live in the uk, but are domiciled and work abroad. That's my situation, and in practice I'm only taxed on the money I bring into the uk ("remittance basis").

If I invoice my clients in the EU (Germany usually) through them, I could 'store' any surplus money offshore and decide when to bring it onshore if and when I need it or the tax situation is favorable. Of course it remains to be seen how the client's host country views such income...

Does anybody have an opinion on that or encountered such structures? And are there offshore umbrella companies that charge a flat fee rather than %% of contract value?

Thanks for info.

florida

[malvolio]

It's possible, but it's all about the defninition of tax residency. If you are deemed to be UK resident for tax purposes, you will pay UK tax on all your worldwide earnings regardless of source: and, of course, concealing such earnings comes under the heading of Tax Evasion (thanks to the EU the tax authorities work together, incidentally, so hiding it in Germany might be difficult). You need to check the rules very carefully to see where you fit in (and they are under review becuase of people like Phillip Green's cavalier attitude to paying UK tax, incidentally).

Assuming you pass the residency test, what you suggest makes sense, but I would get professional advice.

[THEPUMA]

If you are UK tax-resident but not UK tax domiciled you broadly only pay tax on non-UK source income to the extent that it is remitted to the UK.

[ASB]

If you are UK tax-resident but not UK tax domiciled you broadly only pay tax on non-UK source income to the extent that it is remitted to the UK.

In the event of not being UK domiciled but UK resident do you think that HMRC might attempt to raise an argument that non remitted income generated by working outside the UK was still UK generated income due to the management of the company being UK based ?

[Antman]

Hi,

I've been a Spanish resident for the past 6 years and I'm about to do one to Brazil, hopefully for good. I'm working on a 6-monther here in the UK, but I'll have spent less than 183 days here in the end.

Can I be non-domiciled here and own a ltd? (I'm having to do it for the last 8 weeks of my contract, thanks Gordy!) I'm thinking of not paying tax and then ..errm declaring it to the Spanish Authorities

Can anyone recommend a good tax accountant for this kind of situation.

A-thanking ewe!

[The Lone Gunman]

Are you talking about the ramsay principle?

From Lord Clyde:

That quote should be a sticky at the top of every contractor web site in the country and possibly the (rather long) slogan for them too.