Will the dividend tax hike take the heat off IR35?

[LondonManc]

You don't need to do that at all.
Your UK LTD buys services from your Bul LTD. Bul LTD pays taxes in Bul.

Just need a letter from a QC and you're good to go eh?

[tomtomagain]

You don't need to do that at all.
Your UK LTD buys services from your Bul LTD. Bul LTD pays taxes in Bul.

Hmmmmm. Now I am not a tax inspector but I suspect that scheme would be construed as tax evasion and carry a jail sentence.

[jamesbrown]

If there is a divi tax hike, one can always open an LTD in Bulgaria. 1 euro capital needed.
It is not a tax heaven per se, but it has a 10% slab tax on personal income, 10% corp tax, 5% divi tax.
In theory one can have an effective tax of 12.5-13% on all profits of a company.
It is certainly a possibility if divi here gets taxed more.

Clearly, you're not familiar with the Controlled Foreign Company rules (and associated charge). Most jurisdictions have something analogous. Plus, any UK-resident director pays tax in the UK on their worldwide income. Imagine that.

[garnet]

Hmmmmm. Now I am not a tax inspector but I suspect that scheme would be construed as tax evasion and carry a jail sentence.

The bold above is the only truth in your statement.

[tomtomagain]

Give it a go then and report back how it works out.