Tax Planning

[DimPrawn]

Cyprus? Hmm.

/goes to look at Cyprus.

And yes - it's going to be an arsehole to find a way of either (a) satisfying or (b) telling them to **** off to three (minimum) tax authorities.

You pay your international tax accountant to deal with the tax submissions to three countries.

Obviously this doesn't make financial sense if you are earning £50K a year.

http://www.taxresearch.org.uk/Blog/2006/06/19/sir-philip-green-the-rewards-of-tax-avoidance/

Who knows if you do it right you might get knighted by Brown.

 

[BlasterBates]

Beware of international tax planing consultants.

You need to take advice from three different tax advisors. There is no way round this.

There are a bunch of contractors who've done jail time taking advice from international tax planing consultants....beware. If you work abroad with contractors most of em have been in trouble with the authorities at some point.

The reason you need to local accountants is because you're covered if they're registered tax consultants. If they're sitting in the Isle Of Man, you can't point to them when the heavies from the tax authorities come round.

 

[The Lone Gunman]

Sorry Prawn, but you are leading this astray and it is far too important.
I do understand this is in general and is therefore liable to piss taking.

You can set up your comapny etc wherever you like but make sure you do the following.

1. Always consult a local tax advisor in country. Complete a local tax return. Pay what is due locally.
2. While still tax resident in the UK complete your tax return. Pay what is due in the UK.
3. when not tax resident in the UK but maintaining a home complete your tax return using the non tax resident section.

Be aware, as Blaster said, the German tax authorities took a very dim view of people set up in Cyprus. Some people went to prison. I was working in Belgium with a guy who had just left Germany and he was bricking it in case they came after him.
The Belgian tax man is moving in the same direction and it wont be long before all of Europe does the same.

Be sure of your status, be sure you pay the right amount.

 

[DimPrawn]

Sorry Prawn, but you are leading this astray and it is far too important.
I do understand this is in general and is therefore liable to piss taking.

You can set up your comapny etc wherever you like but make sure you do the following.

1. Always consult a local tax advisor in country. Complete a local tax return. Pay what is due locally.
2. While still tax resident in the UK complete your tax return. Pay what is due in the UK.
3. when not tax resident in the UK but maintaining a home complete your tax return using the non tax resident section.

Be aware, as Blaster said, the German tax authorities took a very dim view of people set up in Cyprus. Some people went to prison. I was working in Belgium with a guy who had just left Germany and he was bricking it in case they came after him.
The Belgian tax man is moving in the same direction and it wont be long before all of Europe does the same.

Be sure of your status, be sure you pay the right amount.

Doesn't seem to worry Sir Philip Green.

 

[expat]

No you are confusing residency with domicile. Fail.

http://www.hmrc.gov.uk/CNR/faqs_general.htm#2nr

Residency is very simple.

No, I'm not, actually. I know the difference, and I was talking about residency. The HMRC FAQs describe how you would normally become not resident and not normally resident, but the meaning behind the liberal use of the word "normally" is that this is how it happens if you do it in a way that they are OK with. And that usually means that you establish not being resident in the UK by becoming demonstrably resident somewhere else.

It is true on the one hand that, if you become resident in say Malta, and then you put in >183 days in a year (or an average of > 91 days/year over 4 years) then you will be tax-resident in the UK as well. But the converse is not true, that being in the UK fewer days necessarily means not being residet; if you are not resident anywhere then you remain resident here.

Domicile is irrelevant in this case, as far as I can see.