P.S. Why are you worried about the new registration requirement if you're stating that the IR have no say over offshore companies...?
Obviously GB is hoping that this will effectively kill them off. I'm not sure about that - if everbody who uses one of these schemes sends them a 500page paper submission on how it works then maybe it would be the IR who get killed off
We will just have to wait for the small print in the Finance Act to see exactly what is involved and what can be done about it.
In answer to how does the money get offshore. In the case of the scheme I was promoting (and hopefully will be again once the details are sorted) ...
End User pays Agent.
Agent pays IOM company.
Contractor works PAYE for IOM company and gets small salary (preserves UK pension and unemployment rights)
EBT is operated by (but seperate from) the IOM employer. EBT pays contractor direct in a form that is not liable to UK tax.
Leave a comment: