Uk CItizen incorp&Managing company offshore Tax Help & Info

[notfortaxing2009]

Hey guys, I'm new


Is an offshore Company incorporated outside the UK such as a IBC/non-resident company in another country, operated and strategically managed from outside the UK with the correct provision in the Articles of Association ensuring the business will never be strategically managed from within the UK, liable to UK Corporate Taxation in any form, simply because of any or all of the following:


# Both Directors are UK tax resident & are living there full time.


# The beneficial owner is a UK resident, and acting director.


# Both or a single Director attends the meetings in a location outside the UK, as per incorporation Articles of Association/By-laws provisions/requirements while physically standing in the UK using Electronic/Telecoms methods as are allowed by the Articles of association/By-laws.


I would think Legally the UK couldn't say that because they attended a meeting by telecoms from within the UK that the UK could claim the strategic decision took place at any place, office or site, within the uk because they are at separate locations, centrally meeting at a location at a legally required/ approved location NOT in the UK, for the meeting to take place, and if anything would be classed as legally invalid and not having taken place at all, as UK board meetings, failing provisions in the Articles of association are deemed to have taken place at the legally registered office in court.


And non-Uk companies strategically managed from within the UK are tax redsident in the UK's eyes.


If company revenue would be at risk of UK company taxation due to teleconferencing from within the UK, there wouldn't be a problem taking a trip out of the UK to conduct all the meetings.


Also in the UK filing the personal Tax return as a UK tax resident employed abroad, foreign employment income is recorded in the employment pages, and not in the foreign income, except in certain circumstances where foreign paid tax is being stated to be reclaimed and listed also in the foregn income pages.


So in the employers name, I assume the company name should be placed, but it does not ask for employers address, country or contact details, be it a UK, of non-UK company you are working for.


Could seeing a non-UK company name spark any investigation into a non-Uk company, incorporated, run and managed from outside the UK?


If the UK is presenting a financial risk to the company profits, it shall be withdrawn from with the owner and directors to be legally non-resident for tax purposes, saving also Uk personal income tax as it has blown it's chance to turn this entrepreneur into a revenue steam and shall instead be compelling him to enjoy is hard earned cash in warmer climates more akin to his tastes, instead of being subject to the extraction of his hard earned money.


I also assume owning the company, and being a director means as per normal Uk directors, I remain an employee of a legaly incorporated and operated non UK business.


Thanks, advice & info please guys

 

[SysOp]

Is an offshore Company incorporated outside the UK such as a IBC/non-resident company in another country, operated and strategically managed from outside the UK with the correct provision in the Articles of Association ensuring the business will never be strategically managed from within the UK, liable to UK Corporate Taxation in any form, simply because of any or all of the following:

No if you keep it strictly like that , it isn't liable to UK Corporate tax.

I also assume owning the company, and being a director means as per normal Uk directors, I remain an employee of a legaly incorporated and operated non UK business.

It is a bit different in some offshore / low tax countries, you won't be a employee of this company but just a director.

 

[notfortaxing2009]

I won't be an employee of this company but just a director?


Well I got the impression from HMRC website that I would need to fill in the employment section reporting I was a Director, employers name and state the income and any foreign tax to be taken into account so it can be taxed.


Are you saying otherwise?

 

[SysOp]

Well, first rule is, you will have to pay income tax when you take out any money of an company, the tax rate is the one which applies for your country.


Now, if the management, the activity and the shareholders in the companies are not resident in the country where you live, you as person won't be taxed, at least if you are in the EU, because it would be against the EU regulative of free trading.


What you can do, instead of taking the money out as payroll or investment you can do it as a loan of a maximum of 99 Years to the company, this is not taxed, legal and most often not mentioned by any tax authority!