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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 7353
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a company that trades in a hotel and property

Customer Question

I have a company that trades in a hotel and property (letting of our own commercial property).
I am thinking of setting up an offshore company that is a travel agents. The company will take some bookings from the hotel and take prepayments for the bedrooms booked.
The company will reimburse the hotel with the payment made, less a commission.
I would like to know whether or not this sounds ethical, viable and legal? Or whether it would sound to a tax specialist / HMRC that it is tax evasion?
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

Why would you wish to do this ? How many hotels will this offshore company provide bookings for ?

Thanks

Sam

Customer: replied 1 year ago.
Hi SamThe main reason for doing this would be to effectively transfer money and capital into another country. Also so that I can spend some time in that country.The offshore company will handle at least one hotel but maybe severla hotels. Initially just one hotel.Thanks
Expert:  Sam replied 1 year ago.

Hi

No why would you set up an offshore company - as you could simply just transfer money abroad from a personal account to facilitate a life abroad.

Will the company serve other peoples hotels? Or will you own all of them?

Thanks

Sam