thats great thanks for the replys much appreciated
A
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Guernsey domicille working on contracts in UK"
Collapse
-
The profits are taxable depending where the profits are generated regardless of which jurisdiction the company is registered. If the company is controlled in the UK, then the income generated becomes subject to UK tax.
If the company was Guernsey registered, and you controlled it from Guernsey, therefore generating the profits in Guernsey from UK sources, the income would be subject to Guernsey taxation.
Leave a comment:
-
Some random thoughts- If you spend enough time in the UK you will be tax resident here, so your personal income will be taxable here.
- This means the income tax and employees NI due on salary (including deemed salary as a result of IR35) might be able to be enforced against you personally if the company hasn't paid it. Any employers NI cannot be extracted from you personally, regardless of where the company is. (An exception to this might be if you a company director and have been negligent or acted illegally in not paying the employers NI.)
- A company you control will be liable for tax in the UK if you are in the UK, it doesn't matter where it's registered. This applies for Corporation tax, and I would have thought for employers NI as well. Employers NI definitely cannot be forced out of a off-shore company, i.e. one that is genuinely resident elsewhere.
- If someone else (e.g. a relative) controls the company offshore and you are just an employee then it might not be taxable (for Corporation tax) in the UK. Be very careful with this. People have set up companies off-shore with accountants as directors, only to have it proven in court that the accountant always followed the UK persons instructions, which made the UK person a shadow director, which meant the off-shore status didn't apply for tax purposes, which meant the UK person went to jail for tax evasion.
- I think the rate of Corporation tax is 0% in tax-havens if you don't actually carry on any business activity there, so in your scenario I don't think the company would have to pay any Corporation tax to the Guernsey government.
- If you do manage to set up a company that the UK government accepts is tax resident in Guernsey, that company can refuse to pay employers NI to the UK. I think that the employers NI is legally due under UK law but the UK cannot enforce payment.
Note I'm just a UK contractor, not accountant or lawyer. My opinions are worth what you paid for them. Etc.Last edited by IR35 Avoider; 7 September 2008, 08:32.
Leave a comment:
-
Sorry, rather i 'know' there is Zero Corporation tax in Guernsey, but i dont know in what circumstance that would be beneficial to me.
thanks
A
Leave a comment:
-
Guernsey domicille working on contracts in UK
Hi all
i am very new to all of this, but basically i have Guernsey, CI domicile status and i am looking to do work for clients on a contract basis in the UK. Now, i do have an accountant that i am speaking to about this, but in the interests of getting a second opinions i would love to get some comments from people on this very helpful forum that seem to know there stuff
Basically, i am looking for the best way of working for clients in the UK and wondered if there are any benefits setting up a Ltd company in Guensey where i have domicile, or should i be setting it up in the UK, or using an umbrella, or. . . setting up a Ltd in the UK which is owned by the company in Guernsey. I am not looking to do anything risky, i just want to find the most efficient way of working, while possibly taking positive advantage of holding a guernsey domicile status. I know there is not Zero corporation tax in Guernsey though i am unsure how that would affect me to be honest, i guess it depends of what option i choose.
many thanks
ATags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: