Operating from the IOM?

[david@purpleaccounts.com]

Operating from the IOM

Firstly l can appreciate the attractiveness of wanting to operate through an IOM company given the zero percent corporation tax.

An IOM company requires you to have two directors, one of whom can be secretary. The directors don't need to be resident on the IOM but there needs to be a registered office address on the IOM which your family could provide.
To be seen as an entity trading from the IOM you will need to demonstrate adequate control/operations in the IOM. If you are merely registered in the IOM but operating from the UK, you would be leaving yourself open to questionning and would be liable for UK CT. To exercise adequate control from the IOM you need to consider tasks such as invoicing and other administration tasks.

Of course, as you are domiciled in the UK, you will be liable to UK income tax on your dividends and you will need to declare the source.

Be interested to know a bit more about what you intend to do through this company; are you contracting only, or will there be other activities.

If you want to discuss further, you can email me at david@purpleaccounts.com

[Bluebird]

would that not mean that your Ltd Co would be registered in IOM rather than UK ?

With that in mind my guess is that most agencies wouldn't touch you with a barge pole...

Perhaps DA can comment ?

[co_sjo]

I'm not really talking about using a scheme though, it'd be my own company etc.. if that makes any difference?

[DaveB]

There have been and still are a fair few schemes operating using the IoM tax regieme. None of them seem to last long and many end up being given the full strip search treatment by HMRC et al. Unless you are in a position to bugger off from the UK and never need to come back should it all go wrong then it's proably one to avoid.

[co_sjo]

I'm curious about trading from an IOM business. I don't have one yet, but am interested to know if it's viable. I have family in the IOM who could set up a business over there. I'm not sure if i'd need to be an employee or a director (not really sure about any of it).

Is there any proper way this could be run to be a real benefit?

From what I (think) understand, ANY money I receive as a UK citizen must be declared and tax paid at the 'normal' rate... if this is the case, then the above surely isn't worthwhile, unless someone knows better.......

Ta