Rachman Posted June 17, 2009 Share Posted June 17, 2009 You are missing a lot. If a company is "managed and controlled" from the UK then in the eyes of HMRC (and the courts) it is UK tax resident and subject to UK tax, so unless you are personally leaving the UK then it won't save you anything. It is very difficult to "invert" most SMEs as the key people and the business are highly intertwined (unlike a quoted company which has independent directors who have to OK most of the big decisions, so if they shift the location of the board meetings it is easy to demonstrate that the company has migrated even if the exec directors stay put).I concur - I've been doing this professionally for clients.the usual 'tax twostep' (for listed companies) is a Jersey incorporated company with an Irish (or sometimes Luxembourg or Swiss) tax residence. Even if you are a private company, it's not always easy to dispense with the first step ( being done by way of a scheme of arrangement (used to flip the shareholders into the new company without paying stamp duty on the transfer of the shares). You then need to actively manage your business from wherever you are (Ireland has a corporation tax rate for companies with 'real' (not pure investment) income, of 12.5%). you then need a proper system of controls to make sure HMRC does not catch you out. It typically costs between £3M and £4M in professional fees excluding management time to effect for a FTSE 250 company. I'd think a small private enterprise could do it for about £100K all told if you just did vanilla stuff and used precedent documents most of the way - not least because you don't need a sponsor and all that Purple Book crap. Just moving your office to the IOM and carrying on as normal is a surefire way of getting a new and unpleasant tax inspector and a rather severe investigation of your current and past practices. Quote Link to comment Share on other sites More sharing options...
southmartin Posted June 17, 2009 Author Share Posted June 17, 2009 Don't you think you owe it to the society you live in to put something back... I know the current government have pisssed it all up the wall for the past few years, but we've all got to chip in somehow, however distasteful. If everyone does this = no tax revenue = spiralling debt and no public services = country fcuked beyond belief... Well yes, to a certain etent - except I think we're way past that point now. Look at it from my point of view - at the moment my household pays over 5x the average amount of income tax... then because the local school is a chav-riddled drug den, we scrimp & save to send 2 kids to private school - another cost, and yet I'm still paying taxes for education that I don't use. Ditto with healthcare. Through c.diff and MRSA the NHS now kills more people than it saves, so we have private healthcare.... do I get any kind of rebate for the NHS that I'm contributing too but not a drain upon?? Nope There are thousands of families in the UK who are paying for services twice (at least) and getting stiffed for it. What's more you get the large multinationals who have the expertise to avoid tax (Cayman Islands etc) and don't pay a penny toward the nation that they extort... so if Badger isn't getting his cash from them, and is getting less because of the unemployment, whilst having to cough up more... then I ask you: Will I eventually be expected to pay for the entire nation? PS - as for "putting something back" all the extras I pay for have VAT, the private healthcare & schooling employs teachers, nurses & doctors who all pay tax, and spend their money in the shops too. I can assure you I'm putting back quite a lot more already Quote Link to comment Share on other sites More sharing options...
southmartin Posted June 17, 2009 Author Share Posted June 17, 2009 If you are making taxable profits something has gone badly, badly wrong. Well it's not real money - we just photocopy £50's ... well if it's goo enough for the BoE... Quote Link to comment Share on other sites More sharing options...
southmartin Posted June 17, 2009 Author Share Posted June 17, 2009 Only around 20% of it. The rest is payed from non-domestic rates and general taxation via the Formula Grant. Seeing as officers spend 80% of their day behind a desk filling out paperwork instead of 'busting crims' then I reckon contributing 20% is about fair! Quote Link to comment Share on other sites More sharing options...
anotherdatamoney Posted June 17, 2009 Share Posted June 17, 2009 Send me a PM. I relocated to IoM a couple of months ago. And getting good tax advice was a nightmare. I was initially told I would have to pay an exit tax of over £1million. I got that reduced to zero but that will not work in every case. I also have all the contacts for government grants, work permits etc. We were offered 40% of all relocation costs, and running costs for 2 years. You are in luck the IoM is actively seeking internet businesses to relocate to the Island. Quote Link to comment Share on other sites More sharing options...
US Citizen Posted June 17, 2009 Share Posted June 17, 2009 Not wanting to flame you, but I am an accountant and have been involved with lots of tax planning over the years. In my view any tax "planning" that relies on non-disclosure or lack of transparency with the tax authorities is, effectively, evasion. And do remember, many of the havens are about to be opened up in terms of their disclosure, almost certainly inc. the Seychelles; I would imagine that HMRC cannot wait to see the lists of haven based companies with UK based shareholders or directors and haven based trusts with UK based settlors - they will have a field day; I have it on good authority that the department for investigating this stuff is being staffed up as we speak! Shite, if your right. I need legal advise. Quote Link to comment Share on other sites More sharing options...
southmartin Posted June 17, 2009 Author Share Posted June 17, 2009 Send me a PM.I relocated to IoM a couple of months ago. And getting good tax advice was a nightmare. I was initially told I would have to pay an exit tax of over £1million. I got that reduced to zero but that will not work in every case. I also have all the contacts for government grants, work permits etc. We were offered 40% of all relocation costs, and running costs for 2 years. You are in luck the IoM is actively seeking internet businesses to relocate to the Island. will do - just as soon as my status is upgraded so I can use the PM system! (have requested it) Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted June 17, 2009 Share Posted June 17, 2009 Send me a PM.I relocated to IoM a couple of months ago. And getting good tax advice was a nightmare. I was initially told I would have to pay an exit tax of over £1million. I got that reduced to zero but that will not work in every case. I also have all the contacts for government grants, work permits etc. We were offered 40% of all relocation costs, and running costs for 2 years. You are in luck the IoM is actively seeking internet businesses to relocate to the Island. Yours must be the thread I recall. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted June 17, 2009 Share Posted June 17, 2009 (edited) Shite, if your right. I need legal advise. Correct comment the tax saving isn't worth it. Just come back from the TT backward 1960's wind swept rock in the Irish sea full of in breds and a feudal political system. Service, manners and debate about 40 years behind and thats in a good week. Edited June 17, 2009 by Greg Bowman Quote Link to comment Share on other sites More sharing options...
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