non-domicile tax status

[thunderlizard]

PCG income-shifting advert

OK advert but it's a bit vague.

It could have done with some real-life (or at least plausible) examples of people who would be affected.

E.g. a nice elderly couple with a B&B; Den & Angie who run a pub...

[malvolio]

OK advert but it's a bit vague.

It could have done with some real-life (or at least plausible) examples of people who would be affected.

E.g. a nice elderly couple with a B&B; Den & Angie who run a pub...

And lose the message in the noise? That level of detail is in the response to the consultation, where the whole proposal is described as "conceptually retarded".

And I suspect this is stage one - no doubrt there will be further reactions once the Budget is announced

[thunderlizard]

Better that than lose it in the silence.

Page 16 of the Observer is OK, but the human angle gets page 1 of the Daily Mail.

[malvolio]

Except HMG doesn't take any notice of the Mail...

[thunderlizard]

OK, the Sun then.

Anyway New Labour has always respected and feared the Mail. Its James Bulger coverage helped give Tony Blair his big break as Shadow Home Secretary ("Tough on crime...").

& this is what Gordon Brown thinks of them:
"Paul Dacre has devised and delivered one of the great newspaper success stories. He also shows great personal warmth and kindness as well as great journalistic skill."
Quoted here

[richy]

Don't be silly. Go away and find out what "non-dom" means and try again.

HTH

Didn't really help.. you might as well not have bothered posting! as I already understand it fully. It is legislation largely unique to the UK (Japan and a few others have shorter limited version etc). Maybe you could refresh your memory of it if yr not clear!

Take this example. Irish ltd co, runs at 15pc corp tax rate right? that runs all the contracts tendered for. Then the irish ltd co pays salary to employees who do the work, at their salaried rate. Money which is paid to employee in ireland or the irish ltd isn't claimable by HMRC as In understand it.

if the UK habiting employee wishes to bring in more of his dividends, that is fine but they will then get taxed in the UK as I understand it. Although upto 5k doesn't have to be declared on flights..!? heh, joke

the best thing is just getting to pay 15pc corp tax!

so.. anyone doing non-dom or foreign ltd co?

thx, richy.

[malvolio]

And I suggest you go look up mutual tax treaties and incorporation requirements in foreign countries within the EU, not to mention more interesting points like in Eire R&D companies pay no tax at all so why not be one of those, and their economy is in a much worse state than ours so the 15%, previously supported largely by incoming EU money, is likely to go up sharply.


Also, if you're going to ask ambiguous, incomplete or unclearly defined questions, you're not going to get useful answers. GIGO rules...

[meridian]

It is legislation largely unique to the UK (Japan and a few others have shorter limited version etc).

Ireland has it too.

Take this example. Irish ltd co, runs at 15pc corp tax rate right? that runs all the contracts tendered for. Then the irish ltd co pays salary to employees who do the work, at their salaried rate. Money which is paid to employee in ireland or the irish ltd isn't claimable by HMRC as In understand it.

No. See here. Counts as a UK employer.
Never mind that you'll still need a UK bank account (I doubt any agencies would wire overseas every week/month) and will be stung for transfer charges and exchange rate spread.

if the UK habiting employee wishes to bring in more of his dividends, that is fine but they will then get taxed in the UK as I understand it. Although upto 5k doesn't have to be declared on flights..!? heh, joke

You don't have to bring your dividends back, you'll just get taxed on them in Ireland - the co will need to pay DWT on any dividends declared to the Irish revenue unless you get a certificate of non-residence from the UK revenue.

the best thing is just getting to pay 15pc corp tax!

But you'll be paying the extra 5% in administration and other fees just to keep up with the offshore regulations and manage the structure.

so.. anyone doing non-dom or foreign ltd co?

thx, richy.

Yes. But not in the UK.

[Not So Wise]

Look up Nominee Company Structure (with an Irish onshore front) if you don't need/want to bring the money back into the country and can claim non dom status (which is NOT non resident).

It's costly to setup and maintain but if you have decent revenue coming in could save you a bundle and honestly the gov is unlikely to touch the basic format as it's just an variation of what most large internationals now do, just with an offshore part added

Though to be honest until we see what happens with the whole non dom thing the gov is trying would not be changing to non dom just yet

If you are not able to claim non dom status the whole set up changes from tax avoidance to tax evasion

[Platypus]

Alternative?

Anyone doing the non-domicile thing to get their clients to pay their ltd company abroad, and then only bring in a tiny portion of salary to live in the UK?

Look at setting up an off-shore (holding?) company which invoices YourCo large sums thereby reducing the tax it has to pay to zero. Then all your money is offshore and not subject to tax (assuming in a tax haven). However when you bring the money in the UK to spend it, it'll be taxable.

I know someone who claimed to be doing this, the off-shore Co invoiced HisCo for "management fees" or somesuch. Not sure how he got the money back into the UK though.