Question Should I setup an offshore account as a freelancer?

[SarahWood]

Hey!

I'm freelance web designer based in the UK. I'm making around £7500 a month and was wondering if I should setup a company and bank in another country to avoid taxes? Also, if I was to open a design agency with employees, would I be able to do the same?

Thanks!

 

[Cetme308win]

The question here is are you planning to move out of the UK ore just planning to stay under the radar?

 

[SarahWood]

The question here is are you planning to move out of the UK ore just planning to stay under the radar?

I have plans to move to the USA in the future but I have no interest in moving anywhere else.

 

[Cetme308win]

I have plans to move to the USA in the future but I have no interest in moving anywhere else.

USA + offshore is a bad idea
Also legally,reducing taxes with an offshore setup is not easy...
You will need a physical office as well as hiring local staff in order to create some economical substance.
The other way is cheating the taxman and avoiding taxes.

 

[orangekangaroo]

I have plans to move to the USA in the future but I have no interest in moving anywhere else.

Sarah if you can, move. With social security if you earn 90k you will get taxed 30k in the UK. In a country like Romania you can reduce the tax with socials to 3 %. Imagine 27k extra in your pocket. Oh and cost of living is half. Plus you will get the motivation to outsource and even make more money. I lived 10 years in UK, I liked it but the world is bigger.

 

[Sols]

As long as you live in the UK, any income you derive is subject to UK income tax (unless you're a foreign national qualifying as resident non-domicile). Having an offshore account to avoid taxes doesn't work anymore. It doesn't change the fact that you still need to pay income tax, or risk far severe repercussions if/when the HMRC finds out.

 

[Rprox]

Hey!

I'm freelance web designer based in the UK. I'm making around £7500 a month and was wondering if I should setup a company and bank in another country to avoid taxes? Also, if I was to open a design agency with employees, would I be able to do the same?

Thanks!

Interesting question, I am a Non-Uk resident, but once you are in the HMRC's database would this make not it harder for SarahWood to establish anywhere else in the world with the intent of enjoying those offshore benefits? @Sols

 

[JohnLocke]

Looks like @Sols already answered your question @Rprox for your own situation it may be different because you say you are a Non-UK resident but you may be forced to check your situation with an tax advisor.

 

[Rprox]

Looks like @Sols already answered your question @Rprox for your own situation it may be different because you say you are a Non-UK resident but you may be forced to check your situation with an tax advisor.

Appreciate it thanks.