offshore company

[anley]

As far as I see it if you're DOMICILED in the UK you have no chance of escaping the Inland Revenue, otherwise everyone would be trading/doing business from an offshore company while putting in the hours and living in the UK.

Remember with the IR many things are not straight forward and also if they say one thing it's normally up to you to prove otherwise, not the other way around. This therefore makes it a huge gamble for anyone trying to be too clever.

Bottom line, if you want to pay far less tax by trading from an offshore company you're going to have to live offshore yourself and for most people this is just not an option.

My advice, get yourself a good accountant (Indian ones are very good) and use him to significantly reduce your tax-bill.

 

[LION63]

Anley you have missed the point that is being made. One is not 'escaping' the Inland Revenue. The reason most people do not take advantage of such schemes is simply because they do not know what to do in the first place.

Accountants can only help their clients if the advice is sought in advance, no point in going to them at the end of the tax year seeking help to reduce the liability - it is too late.

 

[donaldduke]

Anley,

The situation is the the equivalent to say owning shares in Microsoft.

Microsoft has been rolling up profits for years, the Inland revenue cannot tax your share of those
US profits until they get paid to you as a dividend.

The same applies to your trading company in Bermuda, the IR cannot tax its profits you until the
company pays you a dividend.


The catch is that not all types of business can use offshore companies, there are rules to
which types of companies can operate in the UK, you probably have to setup a UK ltd
company for most ventures. But Trading is one of those few ventures where you can use an
offshore company because you are trading offshore too (eg only trading the US markets
say).

Ofcourse you still need to seek legal advice to make sure you do everything by the book..

 

[gullible]

THe best way to clear the confusion is to seek Inland Revenue's clearance. They are a fair bunch, if it is legal and f=does not cause the UK fraudulent tax loss they will give you a clearance,. They are a fair bunch and they can only work within the law.

Once you have got the clearance perhaps you can team up with one of tax partners in big 4 to market the scheme. Guaranteed to become a billionaire overnight.