Guernsey domicille working on contracts in UK

[yeahyeahwhatever]

Hi all

i am very new to all of this, but basically i have Guernsey, CI domicile status and i am looking to do work for clients on a contract basis in the UK. Now, i do have an accountant that i am speaking to about this, but in the interests of getting a second opinions i would love to get some comments from people on this very helpful forum that seem to know there stuff

Basically, i am looking for the best way of working for clients in the UK and wondered if there are any benefits setting up a Ltd company in Guensey where i have domicile, or should i be setting it up in the UK, or using an umbrella, or. . . setting up a Ltd in the UK which is owned by the company in Guernsey. I am not looking to do anything risky, i just want to find the most efficient way of working, while possibly taking positive advantage of holding a guernsey domicile status. I know there is not Zero corporation tax in Guernsey though i am unsure how that would affect me to be honest, i guess it depends of what option i choose.

many thanks

A

[yeahyeahwhatever]

Sorry, rather i 'know' there is Zero Corporation tax in Guernsey, but i dont know in what circumstance that would be beneficial to me.

thanks

A

[IR35 Avoider]

Some random thoughts

• If you spend enough time in the UK you will be tax resident here, so your personal income will be taxable here.
• This means the income tax and employees NI due on salary (including deemed salary as a result of IR35) might be able to be enforced against you personally if the company hasn't paid it. Any employers NI cannot be extracted from you personally, regardless of where the company is. (An exception to this might be if you a company director and have been negligent or acted illegally in not paying the employers NI.)
• A company you control will be liable for tax in the UK if you are in the UK, it doesn't matter where it's registered. This applies for Corporation tax, and I would have thought for employers NI as well. Employers NI definitely cannot be forced out of a off-shore company, i.e. one that is genuinely resident elsewhere.
• If someone else (e.g. a relative) controls the company offshore and you are just an employee then it might not be taxable (for Corporation tax) in the UK. Be very careful with this. People have set up companies off-shore with accountants as directors, only to have it proven in court that the accountant always followed the UK persons instructions, which made the UK person a shadow director, which meant the off-shore status didn't apply for tax purposes, which meant the UK person went to jail for tax evasion.
• I think the rate of Corporation tax is 0% in tax-havens if you don't actually carry on any business activity there, so in your scenario I don't think the company would have to pay any Corporation tax to the Guernsey government.
• If you do manage to set up a company that the UK government accepts is tax resident in Guernsey, that company can refuse to pay employers NI to the UK. I think that the employers NI is legally due under UK law but the UK cannot enforce payment.

Note I'm just a UK contractor, not accountant or lawyer. My opinions are worth what you paid for them. Etc.

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The profits are taxable depending where the profits are generated regardless of which jurisdiction the company is registered. If the company is controlled in the UK, then the income generated becomes subject to UK tax.

If the company was Guernsey registered, and you controlled it from Guernsey, therefore generating the profits in Guernsey from UK sources, the income would be subject to Guernsey taxation.

[yeahyeahwhatever]

thats great thanks for the replys much appreciated


A