Newbie - offshore scheme question

[fatsuperman]

Thanks Cojak & Maslins, I did spend a fair amount of time researching prior to the contract being signed, I couldn't find out enough about the offshore schemes to be comfortable and I figured the tax saving for going Ltd on my within IR35 contract wasn't worth the extra hassle.

Next one I'm going to make sure I'm doing work for a couple of other co's at the same time and make sure I'm as IR35 proof as I can be.

Maslins - glad to see a fellow TW'er

D

[watford]

Thanks Cojak & Maslins, I did spend a fair amount of time researching prior to the contract being signed, I couldn't find out enough about the offshore schemes to be comfortable and I figured the tax saving for going Ltd on my within IR35 contract wasn't worth the extra hassle.

Next one I'm going to make sure I'm doing work for a couple of other co's at the same time and make sure I'm as IR35 proof as I can be.

Maslins - glad to see a fellow TW'er

D

As cojak & maslins say Ltd is the way to if you are considering a long term career in contracting, as for off shore options leave well alone

[Maslins]

Thanks Cojak & Maslins, I did spend a fair amount of time researching prior to the contract being signed, I couldn't find out enough about the offshore schemes to be comfortable and I figured the tax saving for going Ltd on my within IR35 contract wasn't worth the extra hassle.

Next one I'm going to make sure I'm doing work for a couple of other co's at the same time and make sure I'm as IR35 proof as I can be.

Maslins - glad to see a fellow TW'er

fatsuperman - If you'd like a sit down chat to discuss any of the above (free of charge), give me a shout.

[Dong]

Hi there,

Just joined and was reading through the posts here. Thought maybe if the original poster still wanted info on off-shore companies, they could have a looksie at the links below.

http://www.hmrc.gov.uk/nic/work/emps-abroad.htm

http://www.hmrc.gov.uk/nic/class1.htm

They basically cover HMRC's view on paying and collecting class 1 NI (NIER and NIEE). It looks like even though the company is off-shore, that just moves the responsibility of the NI to the next on-shore level. For Employers NI, that's the agency and their clients (you'll notice the off-shore umbrellas tend to pay that one) and for Employees NI, that's the employee themselves.

Just something to keep in mind I guess.
Ta

[singhr]

How are we supposed to get this country back on its feet if everyone is trying to avoid paying their whack? When you are an OAP will you be bleeting that the government is not looking after you properly after all the tax you've paid etc...... Cough up like the rest of us law abiding contractors on CUK and pull your weight.

[DonkeyRhubarb]

Cough up like the rest of us law abiding contractors on CUK and pull your weight.

I don't expect you to answer this but think about it. What is your gross income and what % of this are you paying in Tax & NIC?

Let's say a contractor, operating a Ltd Co outside IR35, was earning £100k and paying 20% tax/nic.

Would a nurse, teacher etc. think this was a fair share?

I suspect the majority of contractors on CUK are operating in this way. Many may also be engaging in a bit of income shifting.

I am sure the Government & HMRC would regard these people as flouting the law ie. incorporating for tax purposes and thereby engaging in tax avoidance.

By blurring the distinction between avoidance (legal) and evasion (illegal), the Government has made "law abiding" a relative concept these days.

I'm not trying to defend the schemes but just pointing out that it's not Black or White. Just like with MPs expenses, there are shades of grey here.

Before anyone responds, have a read of this. Sound familiar?

http://entertainment.timesonline.co....cle6860238.ece

[Maslins]

Why is IR35 not mentioned in that link?

I can't see famous presenters getting the BBC to accept a valid substitution clause, and I'm sure the hours/place of work are set in stone...

[Robot]

Why is IR35 not mentioned in that link?

I can't see famous presenters getting the BBC to accept a valid substitution clause, and I'm sure the hours/place of work are set in stone...

Maybe they’re under IR35 on the BBC contracts but outside IR35 on their other income they receive as journalist...

[BrilloPad]

Hi everyone,

Next week I'm starting my first contract for a decade, I'm currently with a 'generic umbrella' and have been speaking to a friend who is also contracting.

From what I can tell, he has a very cavalier attitude to tax and for around 12 months I believe he was self-employed and didn't bother paying tax (he says he'll "pay the bill 9 months after year-end"). Recently he told me "he's offshore now" and recommend I get involved.

Clearly this is someone I shouldn't be taking advice from, however I thought I'd have a browse here for info on these schemes - couldn't turn up much. Can anyone give me an overview of how these work and the risks involved?

Much appreciated!
Fats

Dont do it. Go Limited.

[TheFaQQer]

Dont do it. Go Limited.

Never thought I'd hear you say that, BP!