offshore company

[LION63]

Chump,

You are totally right with your analysis of my example, what I was seeking to demonstrate is that there are so many different ways of doing things, and that in the end, it comes down to trying to keep things as simple as possible because paying the Inland Revenue (none of us like/or want to) is not as bad as some think. Unless the individual knows what they are doing or pays for expert advice, it is not worth the frustration that will inevitably follow.

 

[chump]

LION,
I would agree with each of the points you have made above......the point I was trying to make is as you rightly suggested...the process of getting a brief is expensive ,but if you give prior thought to the major issues at the outset you can determine whether or not it is even worthwhile going that further step and incurring the cost of consultation ...same old same old....you need to know a little to start with just to know if you need to know more.... my posts were really just to try to give some outline of the major issues you should be thinking about before you go any further

 

[spc]

thank you all for your views.

 

[alpha_monkey]

LION,
I would agree with each of the points you have made above......the point I was trying to make is as you rightly suggested...the process of getting a brief is expensive ,but if you give prior thought to the major issues at the outset you can determine whether or not it is even worthwhile going that further step and incurring the cost of consultation ...same old same old....you need to know a little to start with just to know if you need to know more.... my posts were really just to try to give some outline of the major issues you should be thinking about before you go any further

Has anyone here considered operating under a Limited Liability Partnership umbrella?

As far as I understand it, the entity is transparent for tax purposes. LLP members get taxed on their portion of the entire income of the LLP. Tax is therefore paid only once by a partner in a corporate and personal sense. This is in contrast to a Ltd company set up where corporate taxes on profits would have to be paid as well as personal taxes.

I'm sure there are a few caveats to the above but it sounds an interesting area to me.
Anyone got any further information on this?

 

[chump]

Alpha,
Good point ,because since Gordon stepped all over the benefits of taking revenue in the form of dividends the Ltd Co has lost some of it's former attraction making the Ltd liability partnership option more attractive by comparison.....like anything though the Ltd liability partnership has issues of it's own that you don't have in a Ltd company......

 

[alpha_monkey]

Alpha,
Good point ,because since Gordon stepped all over the benefits of taking revenue in the form of dividends the Ltd Co has lost some of it's former attraction making the Ltd liability partnership option more attractive by comparison.....like anything though the Ltd liability partnership has issues of it's own that you don't have in a Ltd company......

So it seems... What issues were you thinking of with regard to LLP entities?

Cheers,
AM

 

[chump]

Alpha,
The usual suspect...LLP IMO is a step forward for a tested partenrship giving them the extra benefit of limited liability at no extra cost to speak of..... but the biggest issue with partnerships is still the biggest issue with LLP and that is the human element of trying to get and keep consensus in a group (2+) .. .this has long been the underestimated problem with partnership based orgs..... obviously a single entity Limited Co does not have this problem...

 

[Battler]

Great posts guys.

I just wish I was earning enough from trading to worry about my tax position!


AB

 

[alpha_monkey]

Alpha,
The usual suspect...LLP IMO is a step forward for a tested partenrship giving them the extra benefit of limited liability at no extra cost to speak of..... but the biggest issue with partnerships is still the biggest issue with LLP and that is the human element of trying to get and keep consensus in a group (2+) .. .this has long been the underestimated problem with partnership based orgs..... obviously a single entity Limited Co does not have this problem...

Very true...

I wonder what the minimum age is to be legally accepted as a business partner. 2yr niece looking good for a stake until proved otherwise!

 

[LION63]

Alpha Monkey,

Assuming I set up a Limited Liability Partnership with 3 other traders and for one reason or another, one of them failed to pay his tax bill, where would that leave the rest of us?

 

[LevII]

My opinion for what it is worth.

1. Don't give advice of this kind unless you truly know what you are talking about AND you have insurance in case you are wrong and someone suffers loss.

2. On the other side of the fence, one ought not act on uninformed tittle tattle. One could find oneself in all sorts of deep (not necessarily offshore) water.

LII

 

[gullible]

1. Bramble has got it covered pretty well. To repeat Bramble's views (pardon me Bramble)

You can have a company wherever you like, UK domiciled, UK Resident pay tax income or otherwise wherever in the world income arose.

Trade in UK pay UK taxes.

Do you know cost of setting up and running an offshore company

Have you any idea what pressure Americans have brought onto these offshore jurisdictions?

Did you know that UK Inland Revenue now received details of UK residents with offshore account?

Have you tried opening a bank account in the UK orin any of the offshore places?

Did you know that Inland Revenue may be many things, but one thing is sure that they are not stupid?

Did you know that the democracy enjoyed by UK residents is because majority of people pay their fair share of taxes?

Did you know that Inland Revenue has a team of specialists in popular offshore places to track 'owners' of offshore companies?

Did you know that Inland Revenue have not to sesucre convictions against tax diggers and they get sent to jail?

Did you know Inland Revenue will charge interest and fines on tax dodged?


Whatever you do get proper expert advise

 

[LION63]

What the majority of post have referred to and explored are options and alternative ways of mitigating tax bills/liabilities and not dodging tax. This is not illegal and the schemes/options discussed have not been on a basis of trying to beak laws. Most people that hire solicitors and accountants do not do so because they are criminals it is in order to ensure that they explore all avenues within the legal framework to ensure that they prosper socially and financially.

Trading the financial markets through a Limited company (UK based or offshore) is not illegal. The Inland Revenue and the Treasury do not have a problem with British citizens or residents conducting their business affairs through such entities, the problem arises when the monies are repatriated and the tax is not paid. One will find that quite a few of the largest UK and US companies have such subsidiaries (if you trawl through the records in Companies House, you will find that all the major banks have tens of them) and the government(s) are quite happy to let them operate.

I say again, it all comes down to the quality of advice that one receives.

 

[donaldduke]

Roll up profits in offshore company and then move to monaco and pay yourself a fat divi!!

Phillip Green (the guy who failed to buy M&S) lives in Monaco and has just paid himself a 500 million
divi !!!

 

[alpha_monkey]

Alpha Monkey,

Assuming I set up a Limited Liability Partnership with 3 other traders and for one reason or another, one of them failed to pay his tax bill, where would that leave the rest of us?

I have no idea really. I'm no tax expert. Suspect the answer to your question would depend on how the partnership was set up initially.

The reason I mentioned LLPs in the first place was as a result of the following.
I'm sure you remember this story. Ex JP Morgan, via Chase, via Chemical:
http://www.thisismoney.com/20040405/nm76676.html

Leading on to:
http://wck2.companieshouse.gov.uk/d56edfd4a58bea81c449ba5be2d8a4be//compdetails
&
http://wck2.companieshouse.gov.uk/d56edfd4a58bea81c449ba5be2d8a4be//compdetails

Good work fellas.

 

[Rainmaker]

I have no idea really. I'm no tax expert. Suspect the answer to your question would depend on how the partnership was set up initially.

The reason I mentioned LLPs in the first place was as a result of the following.
I'm sure you remember this story. Ex JP Morgan, via Chase, via Chemical:
http://www.thisismoney.com/20040405/nm76676.html

Leading on to:
http://wck2.companieshouse.gov.uk/d56edfd4a58bea81c449ba5be2d8a4be//compdetails
&
http://wck2.companieshouse.gov.uk/d56edfd4a58bea81c449ba5be2d8a4be//compdetails

Good work fellas.

I believe that in an LLP, each partner is taxed as an individual (i.e. self-employed). The entity is not taxed, but each individual is. If one individual fails to pay their tax, that person is pursued by the IR. There is a huge National Insurance advantage to an LLP - in that the partner drawings are classed as self-employed profit share and therefore liable to class 4 NI, unlike PAYE where there is a hefty bill for employer and employee.

 

[Rainmaker]

I explored similar issues with a friend who is a "Big 4" Tax Partner and the perceived wisdom is to roll up investment gains offshore as Capital Gains, and, if you have a HUGE tax liability, move to a low/zero tax environment for a year, cash in your chips and pay no tax. This involves setting up an offshore OEIC, etc.

 

[alpha_monkey]

I explored similar issues with a friend who is a "Big 4" Tax Partner and the perceived wisdom is to roll up investment gains offshore as Capital Gains, and, if you have a HUGE tax liability, move to a low/zero tax environment for a year, cash in your chips and pay no tax. This involves setting up an offshore OEIC, etc.

Love your work.

 

[chump]

Rain,

"explored similar issues with a friend who is a "Big 4" Tax Partner and the perceived wisdom is to roll up investment gains offshore as Capital Gains, and, if you have a HUGE tax liability, move to a low/zero tax environment for a year, cash in your chips and pay no tax. This involves setting up an offshore OEIC, etc."...

If you go back to your friend and explore it further you will find that is not the 'full' story...

Cheers

 

[Rainmaker]

chump

this is a much cut-down version of a VERY long and boring conversation. but please tell me more of the story.