Reducing taxation on foreign-earned income?

[Rantor]

i unsterdand mtm montpelier are offering two different ir35 schemes and/or phasing out 1 scheme and replacing it with another. if so - why r they phasing out scheme is it bad !!.. can anyone confirm this.

I assume they are phasing out the one that is being challenged by the IR on technical grounds.

In 2003 I wound up a ltd company I had been contracting through for close to seven yrs partly on the advice of accountant but also becuase I was having a stab at plan B. Turned out I needed some extra funds so I used the MTM scheme for a short while (six months total.)

The IR started challenging it about a yr ago and as far as I can tell MTM are mounting a robust (though way too technical for non-lawyers) defence. I must admit I haven't even followed up on it for months because

a) The amount I put rhough it was comparitevely small so reclassifying income for taxation purposes wouldn't hurt too much

b) Edited as previous comments could be considered to be disparaging to the undoubtedly fair and equitable HMRC

Overall, given that IR35 is being put on the back burner I think it would be much easier to use a Ltd for the time being until Gordo nationalises all yer money.

[J35K]

Which Mtm Montpelier Scheme

Alas due to new European laws they cannot backdate. Hurrah for Europe! Its a complex area - but MTM are very well prepared.

i unsterdand mtm montpelier are offering two different ir35 schemes and/or phasing out 1 scheme and replacing it with another. if so - why r they phasing out scheme is it bad !!.. can anyone confirm this.

[malvolio]

Really? That would be very interesting if true. Do you have a reference, or is that merely sales material?

[BrilloPad]

No problems, Hector will merely introduce a new rule at the next budget that makes it inadvisable fo UK citizens to use offshore banking structures if they turnover less than £1m or something, backdate it to December 2004, then ask you for the missing back tax, with interest. I suggest you keep it handy somewhere...

Alas due to new European laws they cannot backdate. Hurrah for Europe! Its a complex area - but MTM are very well prepared.

[ASB]

Ian,

A lot can depend upon whether you are UK domiciled. Check it out on HMCR website. There are circumstances when it is possible to be taxed on a remittance basis rather than mondiale.

However it might not be easy to convince an inspector that the income is not generated in the UK.

It's a difficuly subject and the answers will be specfic to your exact circumstances.

[IanW]

All the advantages of the IOM without moving there.

I guess that's "Montpelier" you're referring to? Have you got a link to them -- google returns quite a few possibilities.

Thanks.

i

[malvolio]

One of their UK arms is based in Warrington - but main location is IOM. The web site says little - only way to find out more is to attend a presentation. I have used them for 6 months and think they are brilliant - I earn so much more. HM Treasury is desperate to close them down - but due to clever structing it will be EXTREMELY difficult.

I just love it when the taxman gets what is coming to them - particularly as my ex works for them.

No problems, Hector will merely introduce a new rule at the next budget that makes it inadvisable fo UK citizens to use offshore banking structures if they turnover less than £1m or something, backdate it to December 2004, then ask you for the missing back tax, with interest. I suggest you keep it handy somewhere...

[BrilloPad]

main location is IOM

Who? That lot in Warrington perhaps? Can't check them out, the website is down...

But there are a dozen ways to manage money offshore - which is fine until you want to go to Tesco...

One of their UK arms is based in Warrington - but main location is IOM. The web site says little - only way to find out more is to attend a presentation. I have used them for 6 months and think they are brilliant - I earn so much more. HM Treasury is desperate to close them down - but due to clever structing it will be EXTREMELY difficult.

I just love it when the taxman gets what is coming to them - particularly as my ex works for them.

[malvolio]

All the advantages of the IOM without moving there.

Who? That lot in Warrington perhaps? Can't check them out, the website is down...

But there are a dozen ways to manage money offshore - which is fine until you want to go to Tesco...

[BrilloPad]

Have you tried Montpelier?

Move to the isle of man if you can (I am not kidding!)

All the advantages of the IOM without moving there.

[triboix]

Hi.

I'm a long-term contractor, but have always worked outside of the UK until now and know little about IR35 etc.

I've now returned to the UK and am working from home on a contract basis for a Canadian company and some other work for a US company. At the moment I'm keping all the income in an offshore acount ánd not landing any but I'm sure that's not going to be enough.

The accountants I've spoken to don't know much, if anything, about what I can do legally to minimise my taxation on earnings from foreign corporations, apart from leaving the country again of course

Can anyone give me, or point me at, anything that might help me understand what options there are, and what questions I should ask accountants to make sure I'm not being taken for a ride?

Thanks,

ian

Move to the isle of man if you can (I am not kidding!)

[malvolio]

"Ask an accountant that does know", would be an obvious answer - SJD, 1stAccountancy or Nixon Williams would be a start. You need someone who specialises in UK tax law for small businesses, which is a nightmare

The other problem is that if you live here, you get taxed on all your UK income at UK rates, irresepective of where it comes from, so options are limited. You should have settled offshore...

[IanW]

Hi.

I'm a long-term contractor, but have always worked outside of the UK until now and know little about IR35 etc.

I've now returned to the UK and am working from home on a contract basis for a Canadian company and some other work for a US company. At the moment I'm keping all the income in an offshore acount ánd not landing any but I'm sure that's not going to be enough.

The accountants I've spoken to don't know much, if anything, about what I can do legally to minimise my taxation on earnings from foreign corporations, apart from leaving the country again of course

Can anyone give me, or point me at, anything that might help me understand what options there are, and what questions I should ask accountants to make sure I'm not being taken for a ride?

Thanks,

ian