Is it possible to operate an offshore company while avoiding corporate tax residency in the UK?

CryptoTrader12

New Member
Hi, I'm a crypto trader in the UK and I would like to setup an offshore company in a zero corp tax jurisdiction. I don't mind paying income/dividend tax in my home country but I would like some control over what my taxable income in the UK is i.e. I don't want to be taxed on the entirety of my profits, only what I pay myself as income.
However I was reading in this article that a offshore company can still be charged UK corp tax "for those companies not incorporated in the UK, they will be considered UK tax resident if they are centrally managed and controlled in the UK.....The implications of being UK tax resident are that the company concerned falls into the UK corporate tax net".
I cannot move out the UK so is there any way I can get around this? Does me trading for the company count as "centrally managed and controlled in the UK" or is management things like paying employees (i.e. myself)? In that case could I not just fly to the offshore companies country every so often and "manage" it from there?
 

James Turner

Trusted Member
Business Angel
Mentor Group
Given the information above, the company would be considered a Controlled Foreign Company in the UK and tax would be payable on an income tax basis on the profits of the offshore company. Whether this is applicable will depend on a number of things such as whether other people are involved, their residential status etc. It is probably worth speaking to someone about this as there may be something that can be done.
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
You can just use a UK company. In UK if your gonna be making less than £100k a year you can reduce your effective tax via deductions. i.e setup a company pension plan (basically a cash deposit product within a pension plan) and pay a tax deductible £40,000 a year into it. Deduct corporate expenses such as office, travel etc. Then pay yourself s tax free salary of £12,500 and then pay the rest in dividends taxed at 7.5% smi(&%.
 

CryptoTrader12

New Member
Sounds good, only problem is I do not want to pay all the profits to myself at once. I want to use most of the profits for further trading and I don't think I can take out all the money from a pension plan till I am 55?
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
Well your gonna have to pay to Caesar what belongs to Caesar if your in UK and can't move. How much trading capital are we talking about anyway that you will be starting with?
 
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