Avoid the rules and get an offshore?

**ChimpMaster** · 22 March 2007, 13:39

Awaiting the bashing... please form an orderly queue...

**malvolio** · 22 March 2007, 13:49

Nah it's just too easy...

However the OP might like to consider words such as UK, Tax, Residency, Evasion, Jail sentence...? Or more economically aligned phrases such as Tax Due, Payment Annually, No F***ing Difference in net income...? Or perhaps "WTF are you doing paying someone to give you all of your own money back and why do you think any sane person would do such a stupid thing?"

**simondolan** · 22 March 2007, 13:51

And the fact that no agency in their right mind would deal with any Company like this anymore.

**boredsenseless** · 22 March 2007, 14:08

Originally posted by malvolio

Nah it's just too easy...

However the OP might like to consider words such as UK, Tax, Residency, Evasion, Jail sentence...? Or more economically aligned phrases such as Tax Due, Payment Annually, No F***ing Difference in net income...? Or perhaps "WTF are you doing paying someone to give you all of your own money back and why do you think any sane person would do such a stupid thing?"

It's not like you to beat around the bush!

**BrilloPad** · 22 March 2007, 14:20

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.

**portseven** · 22 March 2007, 14:28

I believe that Reed are still reccomending Focused consulting for people. They operate via Isle of Mann using a split between, NMW + Trust Fund.

**ContractIn** · 22 March 2007, 14:56

Originally posted by andrew_neil_uk

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.

You need to consider whether UK onshore agencies and direct clients will deal with offshore set-ups. I have had one contract recently, where I sourced direct, but almost didn't get the contract as the end client would not sign the offshore provider’s contract, eventually found a mutual way to get around i.e. had to go through an intermediary agency. I am now aware that many agencies will not deal with this company in current set-up as. Even if HMRC cannot get tax from the offshore company; and you, they will seek to get reimbursement from the agencies and end clients. So obviously do not wish to deal with anyone who appears to be using such set-ups.

I am seeing out current contract and will then move to Ltd.

**PAG** · 22 March 2007, 15:29

Originally posted by james55555

I was using a offshore company in the Isle of Man called "Aceline". They are ceasing trading soon (presumably due to the new laws).

My agency has explicitly recommended I move to another Isle of Man company called Charterhouse, using a product called CSS : Charterhouse

They work in the same way it seems. I send them a timesheet, they invoice my agency, agency pays Charterhouse and Charterhouse pay me, GROSS, into my personal bank account. I can still claim expenses incl travel and food.

To be honest, it sounds too good to be true. I thought the whole point of all this legislation was to stop people avoiding tax. Am I really at risk if I use these people - even if I DO pay all my tax as a should ?

A friend of mine has been using Charterhouse for some time but his agency is refusing to let him use them as they are saying THEY could be liable for tax debt if he doesnt pay his tax. seems a bit excessive?

Going offshore is going to save me a fair amount especially now the tax is up 2% for small businesses (i.e. PSCs).

Anyone have a good reason why we ALL shouldnt just do it all offshore???

thanks in advance for your comments.

Cheers
James,
London

Are you serious ??

**ratewhore** · 22 March 2007, 16:29

Originally posted by andrew_neil_uk

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.

Are you talking about the ramsay principle?

From Lord Clyde:

No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or to his property as to enable the Inland Revenue to put the largest possible shovel into his stores. The Inland Revenue is not slow - and quite rightly - to take every advantage which is open to it under the taxing statutes for the purpose of depleting the taxpayer's pocket. And the taxpayer is, in like manner, entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Revenue

Avoid the rules and get an offshore?