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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13975
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am the Director and sole employee of a UK-based ltd co,

Customer Question

Hello. I am the Director and sole employee of a UK-based ltd co, with all consultancy work done in the UK. Can you advise me on the current and anticipated future legality of potentially running the company from an offshore location? Thanks in advance.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am onbe of the Uk taxe xperts on Just Answer.

Can you advsie

1) Will the work still be carried out in the UK

2) Why the desire to set up an offshore company

3) Note we cannot provide anticipated advsie which I am sure you can appreciate, we can only advsie on the current legal position

Thanks

sam

Customer: replied 1 year ago.
1) Yes, likely to be work in UK.
2) Simply to minimize tax liabilities. With Osborne's announcement about corporation tax reduction post-Brexit, it seems more unlikely that I would. As it stands, I have no current intention to do so.
3) Absolutely appreciated.
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response and providing the information requested

As ranks are closing (regardless of Brexit) with all countries making full disclosures of offshore companies, then I fear you will be caught in a position where you will be treated as liable to company tax in the UK (if a company should be the case at all as when anyone mentions umbrella companies, specifically when they have just one client they they provide services/work for)

And any money you draw up - which must be salary OR dividends will remin liable to UK tax - so other than the additional costs you pay for running a limited company already which will still apply offshore (tax charged twice on the same income and then you also suffer the employer National Insurance charges and admin fees for paying for the company to be run for you)

Any savings made are in fact tax evasion - my advise

Do not set up an offshore company and furthermore check the legality of your current arrangement as I fear were it not for the limited company you would in fact be an employee -

If you do have many clients then do advsie as then the current limited company position (rather than umbrella company) may be the route to go and I can advise further on this

Thanks

Sam