Running your company from Ireland

[Flat Eric]

Actually, I've changed my mind..

Belize is the place...

Specifically where it states ... What Can IBC's be Used For?
"Consultancy and Professional Services. Individuals who receive significant payments for their services (such as consultants, writers, designers, directors, composers, entertainers, engineers, etc.) may contract themselves through an offshore company that pays the individual an agreed upon fee. This is structured so as to minimise their tax liability and to invest the profits in a tax-free environment, thus generating optimum returns. Payments to the individual can then be structured in such a way to minimise personal income tax."

[Dow Jones]

Too obvious, innit?

Same goes for any other offshore - a friend of mine was using a Cyprus-registered one, but they are now subject to EU rules, same as CI/IOM - you have to live there for some/all the time or operate from there, ie use offices, lines and equipment located there.
Ireland authorities should present no problem to HMRC - they may even be on 1st name terms with them!
I'd go for Cayman Islands or Panama

[Flat Eric]

... you have to live there for some/all the time or operate from there, ie use offices, lines and equipment located there ...

Not in Belize you don't.. You just assign nominees who are usually a management company set up specifically for this. i.e. the people who's link I posted..

As an aside, they also do Panama and Caymen Island companies ..

[Flat Eric]

Too Obvious...??

Not sure what you mean. Say you had a belize registered company and were fully compliant with all Belizian (sp?) law. You paid correct UK income tax on the income you received from this company. Wheres the problem.

I admit, the residency rules pointed out above may make it unworkable, but how would they know.

Actually, what if your belizian company didnt' pay you a salary but simply paid you in shares. Theres no part of the self assessment form which asks you to disclose how you came about your dividend income, just that you report it.

[ASB]

Yes, there is precisely nothing to stop you setting up in Belize. But it changes precisely nothing. What you seem to be reluctant to grasp is that if the company is managed is from the UK then it is UK resident irrespective of where it is incorporated.

you might want to look at something like a Lichtenstein anschloss controlled by a few indirections of nominees but then HMRC just paid about 100k to a disgruntled Lichtenstein banker. He handily passed on details of all the individual beneficiaries of a whole number of accounts.

There may well be offshore solutions appropriate to you, but generally they become somewhat more complex (and expensive) than just thinking "I know, I'll go incorporate somewhere else and save a packet".

Edit: subject of Belize do some research on Lord (Michael) Ashcroft.

[Flat Eric]

Ok,

I suppose the point is.. How could HMRC find out if a company in belize is controlled by someone in the UK. They could appoint nominee directors and all shareholder details are not recorded with the belizian authorities.

All they would see is a UK person drawing income via dividends as reported on the SA.

[ASB]

Ok,

I suppose the point is.. How could HMRC find out if a company in belize is controlled by someone in the UK. They could appoint nominee directors and all shareholder details are not recorded with the belizian authorities.

All they would see is a UK person drawing income via dividends as reported on the SA.

Well an aspect enquiry into your SA return would be a good way for the ball to start rolling....

I accept that HMRC may find it difficult to find out, but any "scheme" that is predicated on them not finding out probably isn't going to work out too well. IF they do find out I suspect that you might have some problems convincing them it was a genuine mistake. This has significant impact on the level of penalties and substantially increases the risk of criminal charges.

Even though Belize uses (generally) bearer shares there is still some link to you somewhere in the chain.

Ask yourself this question: If the money can be paid to you there is documentary evidence of where it came from. If you can cause it to be paid then there is documentary evidence of your control. If you can't cause it to be paid how are you going to get it?

[Dow Jones]

Won't wash

It's all academic - the point is you are not going to be able to operate in this regulated contract market (other businesses are different, eg sales, property, web-services) with a co. based in Belize/Panama/etc.
Cue in the requests for copies of co.reg/vat reg/bank name & account nos that we've been endlesly debating here.

[Flat Eric]

Well an aspect enquiry into your SA return would be a good way for the ball to start rolling....

And why would they do that. What would prompt them to do this.. You would be paying tax on the share dividends you earned at the appropriate rate.

That's exactly how my grandparents receive a good portion of their pension. They get a state pension and have their income topped up with dividends on shares they hold. They get about several thousand between them and they pay all their income tax etc accordingly.

No one, to my knowledge, has ever asked them wether they control any of the companies they get dividends from.

Surely, HMRC would have to prove that a company in belize is being run by someone in the UK. Only the court of belize could order such an investigation and recover any documents citing anyone with a controlling interest. Hell, what's to stop you muddying the waters even more by putting control over the belizian company into the hands of a Panamanian one.

[ASB]

Because they can. Self assessment is oddly enough based on checks being made rather than blind faith.

There are time limits on when they can do this and what they can reopen. Load of details on HMRC website. Unfortunately not many on how to avoid getting picked for one.