Reply to: using an offshore company ?

[BlasterBates]

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

Basically what that means is, if your employees are working physically in the UK. The offshore call centre's employees sit and do their work in India.

[tim123]

Do you think Perl Harbor was an "Internal Job" ?

ps " not sure bout the spelling"

I haven't the faintest idea what point you are making.

(and yes, you have spelt it wrong, assuming that you mean this:
http://en.wikipedia.org/wiki/Pearl_Harbour#1800-1941)

tim

[ASB]

"Germans".

I understand there is a fairly major repatriation of cash from Luxembourg back to Germany going on that the moment. Mainly because of the european savings directive thing. Since the Lux authorities soon have to start notifying the accounts or the witholding account owners are a little nevous that they may need to justify where the money came from - under risk of confiscation - to the German authorities.

[tim123]

Then you go over to Germany and they're saying not just every German man and dog, every UK, French Italian etc etc. Then over in France they're saying...

This isn't a political discussion about whether there should be a system. It's a financial discussion about whether there IS a system.

Do you not think that there are millions of French, Germans, Italians.... moving money offshore to avoid tax.

There are. It is rife. Most do so in the full knowledge that the non declaration of this income to their home tax authority is illegal. No-one in these countries who does this, kids themself that they have fond a 'legal' scheme. They all do it using the "getting away with it" tax rule.

tim

[The Lone Gunman]

HMRC would regard the company as UK resident in those circumstances but it is not absolute. What you describe is an effect rather than a rule. The criteria used is essentially where the management of the company occurs.

In practice though if you are a director they are going to instantly argue management, if you are not a director they are going to argue you have the powers of a director - if you try and maintain the management is done by the "agent" in the offshore location they will argue you are a shadow director.

That is pretty much it.

[ASB]

Registering: Not sure if you would "have" to register the company, but as far as HMRC are concerned your Ltd is tax resident if you are. Asuming a 1 man Ltd.

HMRC would regard the company as UK resident in those circumstances but it is not absolute. What you describe is an effect rather than a rule. The criteria used is essentially where the management of the company occurs.

In practice though if you are a director they are going to instantly argue management, if you are not a director they are going to argue you have the powers of a director - if you try and maintain the management is done by the "agent" in the offshore location they will argue you are a shadow director.

[ASB]

Yes ASB there are some fes but they are just that - fixed fees and not a PERCENTAGE of your earnings.

I never said they were a percentage. You chose to infer that. What I actually wrote was "flat tax" because this is how they were (and often still are) described (e.g. you pay an annual flat tax of "x" in exchange for exemption).

[2uk]

If there were legitimate" holes in the system don't you think that every man and his dog would be using it. And not just every UK man and dog, every German, French, Italian etc etc.

tim

Do you think Perl Harbor was an "Internal Job" ?

ps " not sure bout the spelling"

[2uk]

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

I dont know if India has low taxes , but they oursource there becaues of the cheap labor mainly.

[2uk]

"2. There is no flat TAX rate in the "offshore heaven" for companies operating outside the offshore zone."



It should take you no more than a minute to discover that is rubbish. Heres a starter:- http://ozannes.com/about_the_channel_islands.asp

In the CI - specifically Jersey the fee used to be £500 GBP per year, but I imagine it is different now. It was the same with non resident companies in Gib. Some places I am sure will charge less. Some will charge more.

[Edit: bacause I originally mentioned the Caymans I looked it up. Their equivalent is $575 USD. Plus some other bits and pieces. I don't know if the certificate of tax exemption needs to be renewed annually or only on incorporation, if it does it's another $185. Granted these are not necessarily called "tax". The general mechanism is apply for tax-exempt status in exchange for an annual fee. ISTR that in Guernsey they actually called these "corporation tax companies" about 20 years ago].

Yes ASB there are some fes but they are just that - fixed fees and not a PERCENTAGE of your earnings.

[The Lone Gunman]

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

I wasnt calling you a tw@t, well no tyet anyways so less of the smart arse stuff right back at you. (That is meant to be a joke so dont get het up).

Happy to give advice if you are listening, there are plenty on here who will correct false advice.

Registering: Not sure if you would "have" to register the company, but as far as HMRC are concerned your Ltd is tax resident if you are. Asuming a 1 man Ltd.

Outsourcing: The customer may be UK, but the company doing the work is in India so the company will be tax resident in India. They may have a sales team in the UK who will be paying personal tax in the UK.

A little reading may be in order but dont be afraid to ask. Try HMRC web site for tax advice, the PCG and Shout99 far alternative contractor viewpoints.

[lith]

Companies who do business in the UK, regardless of where they are registered eg S.A. in Spain, GmbH in Germany need to register in the UK for tax purposes.

Thus yes you can use offshore companies but because you'll be working in the UK for more than 6 months, then that company needs to register with the Inland Revenue for their business in the UK.

Ah ok..
Would that mean register and the company (not just employees working in the UK) pay tax to the UK after that 6 months, as if they were in the UK?
*I'm listening and paying attention to your advice* p

I wonder how this works for e.g. outsourcing coding or call centres to places like India?
If their customers = business are based in the UK

Hmm..I think maybe I should *get some books* then come back here after a few months reading!

[BlasterBates]

Companies who do business in the UK, regardless of where they are registered eg S.A. in Spain, GmbH in Germany need to register in the UK for tax purposes.

Thus yes you can use offshore companies but because you'll be working in the UK for more than 6 months, then that company needs to register with the Inland Revenue for their business in the UK.

[lith]

This tw@t just isn't going to listen.

I hate his sort. Comes and asks for advice then ignores it or thinks he knows better. Fook him.

Er which particular "tw@t" are you referring to?

[ASB]

"2. There is no flat TAX rate in the "offshore heaven" for companies operating outside the offshore zone."



It should take you no more than a minute to discover that is rubbish. Heres a starter:- http://ozannes.com/about_the_channel_islands.asp

In the CI - specifically Jersey the fee used to be £500 GBP per year, but I imagine it is different now. It was the same with non resident companies in Gib. Some places I am sure will charge less. Some will charge more.

[Edit: bacause I originally mentioned the Caymans I looked it up. Their equivalent is $575 USD. Plus some other bits and pieces. I don't know if the certificate of tax exemption needs to be renewed annually or only on incorporation, if it does it's another $185. Granted these are not necessarily called "tax". The general mechanism is apply for tax-exempt status in exchange for an annual fee. ISTR that in Guernsey they actually called these "corporation tax companies" about 20 years ago].