| 1:18 am on Jan 2, 2004 (gmt 0)|
This is a very tricky situation if not highly suspect. In my past experience with other companies it is best to consult with a solicitor.
I have found that in my dealings there are a far higher number of UK companies with offshore business' than in the United States. Probably due to the high VAT. So I would get my ducks in a row prior to leaving the UK.
| 10:02 pm on Jan 2, 2004 (gmt 0)|
Leaving the UK aint such a big hassle as I can have passports for UK, Aus and NZ.
| 6:07 am on Jan 3, 2004 (gmt 0)|
Wherever you reside you are most likely going to be taxed by someone if you want to operate legally.
I'm a Brit, I initially moved to Florida, set up shop.....but had to pay US tax....lower than the UK (and most of the US), but unavoidable......live with that!
There are some tax "safe havens".....but they are generally very tricky to achieve legally and without considerable funds.
Reducing your tax liability when you don't really care about paying tax is actually not so tricky, it is an irony, conundrum, and one of the many flaws of the world we live in.
My advice is select a tax friendly location for an Internet based business where you can initially be a resident and operate legally.
If it turns out to be a great success, a number of "magical opportunities" will open up to you that totally negate the initial problem and desire.....odd world ain't it? ;)
| 7:24 am on Jan 3, 2004 (gmt 0)|
|..how easy would it be to set it up offshore business wise to minimise tax. |
Very easy and it has got cheaper over the last few years. You can even operate a credit card from an offshore bank quite easily these days. The possibilities are endless there is even a proposed city that slowly circumnavigates the world for tax purposes called The Freedom Ship [freedomship.com] :)
Three things to remember though;
1. "The legal right of an individual to decrease or altogether avoid his/her taxes by means which the law permits cannot be doubted" Gregory v. Helvering, 293 U.S. 465
2. The key words are ...which the law permits... so if you want a clear conscience check every step of the way with a specialist lawyer.
3. When selecting a specialist lawyer make sure that they practice what they preach ;)
| 8:18 am on Jan 3, 2004 (gmt 0)|
Heh, whenever I see these ideas I can't help but think about the Sealand/HavenCo story [havenco.com]
(photo [sealandgov.com]) (abcnews article+video [more.abcnews.go.com]) (Wired article [wired.com]).
|HavenCo offers Linux servers for $1,500 a month -- the founders signed an agreement with Roy Bates, the quirky "crown prince" of Sealand who landed on the abandoned platform in 1966 and claimed it as an independent nation with its own currency, stamps, and flag. |
| 1:08 pm on Jan 3, 2004 (gmt 0)|
the Inland Revenue will look at where real control of the company resides - not just where it is registered, office address etc.
if offshore, trading in UK and pushing your luck the Inland Revenue could consider that you have a 'branch' in the UK. They used to slap on a 25% branch tax for this and have reciprocal arrangements with lots of other countries.
if sending physical goods the overhead and headache of having customs impound (customer needs to pay the duties before they can collect the goods) sent from outside the EC is more hassle and cost than it is worth.
| 5:21 pm on Jan 3, 2004 (gmt 0)|
Thanks for the comments. Im actually seting up a job board so are not shiping and goods or products. Does that make a difference?
And are you able to register and set up a company and then take it offshore at a later date or is it best to set it up right from the start?
| 6:16 pm on Jan 3, 2004 (gmt 0)|
|And are you able to register and set up a company and then take it offshore at a later date or is it best to set it up right from the start? |
Don't even think about taking an existing company offshore - start with an offshore set up from day one if offshore figures in your financial planning.