Reply to: Anyone operating through an offshore limited company?

[Iliketax]

So if you save £15k per year, that's a £75k invoice per year from the cayman company. Using a reasonable multiple, that suggests that the IP that you transfer to it is worth around £300,000. There must be quite a lot of tax on that £300,000 you are treated as receiving (even though you get it)?

And as it's your company, the cayman company will probably be managed and controlled in the UK and so it will pay UK tax. So it pays £15k. Oh, HMRC will also say that the £75k paid by your UK company is not for the purpose of its trade and so will disallow it.

So in summary: Tax on £300,000 that you never get. Cayman company paying an extra £15k per year. UK company, no difference in tax each year. Nice one?

[tomtomagain]

If google, amazon and starbucks are getting away with it then surely i can too? I'm thinking to go outside of EU and US jurisdiction considering recent scandals in switzerland. Always fancied a trip to the cayman islands!!

Idea might be to set up a limited company abroad then to charge my UK company some kind of licence/consulting fees. Thoughts/experiences? I figure that I can save £15k/year in corporation tax!!

Save a whole 15k a year. That'll barely cover the flight and hotels.

[JRCT]

It makes you wonder why with all the talk of cracking down on tax evading companies in the Senate and the House of Reps, why are they focussing on overseas?

It's almost as if the VP comes from a tax avoiding state

Whenever anyone refers to 'The Senate', I immediately think of Star Wars and Chancellor Valorum

[TheFaQQer]

The cayman Islands is so 1990s. All the cool kids are incorporating their dodgy companies in Nevada or Delaware these days...

It makes you wonder why with all the talk of cracking down on tax evading companies in the Senate and the House of Reps, why are they focussing on overseas?

It's almost as if the VP comes from a tax avoiding state

[Safe Collections]

The cayman Islands is so 1990s. All the cool kids are incorporating their dodgy companies in Nevada or Delaware these days...

[Pondlife]

I didn't think a nice girl like you did such things

This is the Business forum and everyone has their price so I am told.

[TheFaQQer]

ATM?

I didn't think a nice girl like you did such things

[DannyF1966]

Question though - how are you going to get the dough back into the UK without getting taxed on it?

Roll up wads of notes, stuff into a condom and insert into orifice. I don't think sniffer dogs are trained to recognise the smell of filthy lucre. Once back in the country, visit a bureau de change.

[mudskipper]

Not a problem setting up an off shore company and sending all your money to it. Question though - how are you going to get the dough back into the UK without getting taxed on it?

ATM?

[meridian]

Not a problem setting up an off shore company and sending all your money to it. Question though - how are you going to get the dough back into the UK without getting taxed on it?

[mrv]

That's because Google and Starbucks have expensive highly trained lawyers and accountants who know every loop hole.
What do you have?

No one can stop a man with a dream!

Well, maybe except a tiny bit of stone cold rock hard reality.

[mrv]

If google, amazon and starbucks are getting away with it then surely i can too? I'm thinking to go outside of EU and US jurisdiction considering recent scandals in switzerland. Always fancied a trip to the cayman islands!!

Idea might be to set up a limited company abroad then to charge my UK company some kind of licence/consulting fees. Thoughts/experiences? I figure that I can save £15k/year in corporation tax!!

I'm sure HMRC are training their junior lawyers on cases like this. Something like making a substitution and letting a promising 17 yo player on for the last 10 minutes, when you're 5:0 up.

[Taita]

If google, amazon and starbucks are getting away with it then surely i can too? I'm thinking to go outside of EU and US jurisdiction considering recent scandals in switzerland. Always fancied a trip to the cayman islands!!

Idea might be to set up a limited company abroad then to charge my UK company some kind of licence/consulting fees. Thoughts/experiences? I figure that I can save £15k/year in corporation tax!!

Brilliant! When you have some time (probably at Her Majesty's pleasure) perhaps you can tax your incisive mind a little more.....Who knows? You might invent a wheel!:

[BlasterBates]

You don't have anything to licence, Starbucks and Google do no-one can question they have a very big marketing pull. They can justify it with examples and comparisons of similar companies. You would be surprised how many of these big names use Franchises.

If you try to argue "Dirty Cash" is a marketing name worth thousands you're going to have a huge uphill battle.

Sceondly you need a company with employees who are actuallly in Switzerland or Luxembourg running it. You probably don't have any.

Thirdly, whilst there are significant savings for a huge company they still pay tax in Switzerland or Luxembourg and whilst it is less than in the UK it's not as low as you might think it is.

If you can persuade your client that you'll do offsite work. Then there is nothing to stop you travelling over to Switzerland setting up a company and doing it there and "avoiding UK tax". But by the time you've costed this out, it won't be worth it. It would cost you far more than you save in tax.

[BolshieBastard]

If google, amazon and starbucks are getting away with it then surely i can too? I'm thinking to go outside of EU and US jurisdiction considering recent scandals in switzerland. Always fancied a trip to the cayman islands!!

Idea might be to set up a limited company abroad then to charge my UK company some kind of licence/consulting fees. Thoughts/experiences? I figure that I can save £15k/year in corporation tax!!

Go ahead. Make my day.