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bigduckontax, Accountant
Category: Tax
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Hello. My name isXXXXX was born & live in the

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My name isXXXXX was born & live in the UK, & I am about to launch a web serviced based social network company, specialising in adult on line dating. I am presently exploring the options of setting up my company off sure in, Anguilla for the tax reliefs, in particular the zero percent corporation tax. Currently my company isn't registered in the UK, I have no fixed assets here, & I don't intend to employ anyone in the short term future.

On paper registering my company as a LLC in a tax haven country like, Anguilla seems a very viable option. However, I am concerned I will still be charged by the HMRC for income tax on my world wide income. Is there a way of avoiding this without having to set up residence in, Anguilla & if so, how would I retrieve income earned by my business whilst still residing in the UK?

I would greatly appreciate any advice you could give me on this matter & look forward to hearing from you soon.

Yours sincerely,

Hello Paul, I'm Keith and happy to help you with your question.

As you reside in the UK your entire income world wide is liable to UK taxation. Whilst you company in a tax haven may well escape taxation any distribution made to you will form part of your income for UK taxation purposes. Frankly, you are on a hiding to nothing here.

To reduce your tax position you could make contributions to a private pension scheme. These may be at 100% of salary to a maximum of 40K. If you use a SIPP you can also go back 3 years and mop up unused contribution levels which were 50K in 13/14 and unlimited in previous years save for the 100% of salary rule.

Sorry to have to rain on your parade.
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