Offshore payments and Ltd contract question

[fraymond]

You don't say whether you are non uk domiciled. That may have led your accountant to make those comments. Regardless, tax needs to be paid somewhere.

[LisaContractorUmbrella]

In fairness to my previous post, the IRS will have nothing to do with it as you are UK based.

Get some proper advice to ensure you pay the appropriate amount of tax. A good accountant will suggest ways of structuring your business to do this. A bad decision could have you wincing every time you pick the soap in the morning, although I am sure he'll only stick it 25% in.

Classic

[Wanderer]

I'm all for paying my share of taxes, being 100% legal, etc, etc. But on the other hand there's nothing wrong with exploring options. I've been contracting a long time and I've looked into a few schemes in the past, I'm interested in how they work but at the end of the day I don't want an investigation.

There are lots of schemes, we even have a sub forum to discuss them. Have a good read through there and decide which one (if any) you would like to use.

If you are a LTD company outside IR35 then you are only paying 15-25% tax which is pretty low by worldwide standards. I don't know why people bother with the schemes - perhaps they fear IR35 more than their scheme getting investigated and closed down...

[cojak]

In fairness to my previous post, the IRS will have nothing to do with it as you are UK based.

Get some proper advice to ensure you pay the appropriate amount of tax. A good accountant will suggest ways of structuring your business to do this. A bad decision could have you wincing every time you pick the soap in the morning, although I am sure he'll only stick it 25% in.

[Andy Hallett]

Offshore payments and Ltd contract question

In fairness to my previous post, the IRS will have nothing to do with it as you are UK based.

Get some proper advice to ensure you pay the appropriate amount of tax. A good accountant will suggest ways of structuring your business to do this. A bad decision could have you wincing every time you pick the soap in the morning, although I am sure he'll only stick it 25% in.

[captainham]

I'm all for paying my share of taxes, being 100% legal, etc, etc. But on the other hand there's nothing wrong with exploring options. I've been contracting a long time and I've looked into a few schemes in the past, I'm interested in how they work but at the end of the day I don't want an investigation.

Take a look at EBTs and offshore trusts, I hear they're all the rage these days and I reckon they'll be right up your street.

Or Cyprus, possibly some options there.

[andyo]

Honestly, get some proper advice.

I know SJD has an international offering these days. For the sake of your sanity, stay on the right side of the HMRC and IRS.

I'm all for paying my share of taxes, being 100% legal, etc, etc. But on the other hand there's nothing wrong with exploring options. I've been contracting a long time and I've looked into a few schemes in the past, I'm interested in how they work but at the end of the day I don't want an investigation.

[BlasterBates]

If that income arises as a result of your contracting in the UK it is taxable. Even if you´re working for a US company, because you will be doing this in the UK then this will be UK taxable income.

Where the money is, is irrelevant.

[jmo21]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

I don't believe your accountant said that. I believe you massively misunderstood whatever he did say.

[istvan]

Sounds like 25% tax evasion . Talk with a tax accountant. 25% in jail is too much

[Andy Hallett]

Honestly, get some proper advice.

I know SJD has an international offering these days. For the sake of your sanity, stay on the right side of the HMRC and IRS.

[Wanderer]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

Will you live and work in the UK? If so, you have to declare your worldwide income and pay tax on it.

If a UK resident was being paid into an offshore account and spending that money while abroad then they are engaging in tax evasion and will land in a lot of trouble if they get caught.

[andyo]

ha, I guess your saying its a no but..

My understanding is income brought into the uk is taxed, income not brought in is not subject to uk tax. A brief chat with the accountant went along the same lines, as long as euros don't come back to the uk in your pocket its fine.

[captainham]

Does this really warrant a serious reply??!!

[andyo]

I'll be contracting for a US company soon, being paid in US dollars. I'm a uk resident and that will unlikely change, however I will expect to be travelling around Europe more for both business and pleasure.

US agent gave the impression they weren't too bothered where and how they paid me.

I'd like to pay my UK company 75% with 25% going offshore. The 25% would be to a personal account, this would cover any expenditure in Europe.
The 75% would exchange from dollars to pounds and the 25% from dollars to euros.

From a uk tax point of view the 25% doesn't enter the country at all, It will sit in euroland for work and holidays.

Sounds okay or not ?

The only problem I can think of is I may have to produce a personal invoice for the offshore element, or maybe what I should have done is a contract for services with an offshore Ltd and then transferred from there ? Contract for service is currently with my uk Ltd.