AardvarkBusiness.net - Business Search Engine AardvarkBusiness.net - Business Search Engine



 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister   ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

     

Tax in the UK

 
 
Post new topic   Reply to topic    AardvarkBusiness.net Forum Index -> Accountancy & Finance Forum
View previous topic :: View next topic  
Author Message
adigaskell
President
President


Joined: 01 Jul 2004
Posts: 5428

7099 ants

PostPosted: Wed Jun 09, 2010 3:59 pm    Post subject: Tax in the UK Reply with quote

It seems likely that corporation tax will rise during this parliament as the governments seeks to rebalance the public finances.

Will it cause you to assess other possibilities?
_________________
My social media blog
Back to top
View user's profile Send private message Visit poster's website
paul
President
President


Joined: 15 Oct 2002
Posts: 8314
Location: UK
11706 ants

PostPosted: Wed Jun 09, 2010 11:24 pm    Post subject: Reply with quote

You mean like taking a company overseas?

I guess it would depend on how much the rate is going to increase...
_________________
UK Hotels - UK Selfcatering
Luxury Travel - Lake District Apartment
Back to top
View user's profile Send private message Visit poster's website
adigaskell
President
President


Joined: 01 Jul 2004
Posts: 5428

7099 ants

PostPosted: Thu Jun 10, 2010 9:37 am    Post subject: Reply with quote

Yes, that's it, although it could also mean personal income tax and locating yourself overseas. It seems likely that taxes will rise for both individuals and corporations, so I'm wondering where your cut-off point is.
_________________
My social media blog
Back to top
View user's profile Send private message Visit poster's website
paul
President
President


Joined: 15 Oct 2002
Posts: 8314
Location: UK
11706 ants

PostPosted: Thu Jun 10, 2010 10:30 am    Post subject: Reply with quote

When I (very briefly) looked at this once before, it sounded like if I wanted to move everything to Gibraltar, say, or Isle of Man or whever, that there was a lot of red tape to go through, expensive accountants and lawyers to appoint, etc. that it just wasn't worth it for me as a small business.

If you're big, however, then I'm sure it must be worth considering, particularly if there's a significant hike in the tax rate. The government must be wary of this and will need to tread carefully to avoid it all backfiring.
_________________
UK Hotels - UK Selfcatering
Luxury Travel - Lake District Apartment
Back to top
View user's profile Send private message Visit poster's website
AdvertisingGuerrilla
Executive
Executive


Joined: 25 May 2010
Posts: 137
Location: UK & ROI
156 ants

PostPosted: Fri Jun 11, 2010 2:22 pm    Post subject: Reply with quote

We did this years ago. You don't need to be a tax dodging millionaire, a wealthy resident of the IOM or spend the majority of your year outside the UK (a stipulation of many tax free havens).


We moved our tax liability to the Republic of Ireland. It has one of the lowest rates of corporation tax in the world, the corporation tax rate is 12.5%, thats not a small business rate or a discounted rate, 12.5% is the normal rate of tax in the ROI. As the UK's main rival in Europe that speaks English, Ireland is far more globally aware, it is part of Europe, has the Euro as a currency (you would not believe how many European and US companies are put off by the volatile nature of the pound and exchange rates). Many of our own clients were secured after we made this change.


Google UK hilariously ran its UK offices at a loss while paying the Irish government all the tax's for its UK customers directly to Dublin, as Googles European head office. http://www.timesonline.co.uk/tol/news/uk/article6122329.ece Paypal,Yahoo, Microsoft and Ebay also have European offices in Dublin and do exactly the same.


Running a business is far more efficient in Ireland, not only is your tax liability tiny compared to the UK, it also costs less to employ people, income tax is 20% as a basic rate up to 36,400 and as getting a University education in Ireland is completely free (thanks to large corporation tax revenues) many of the employees are highly educated and have experience of working for some of the best known business's in the world.


I would highly recommend anybody with any common sense and a profitable business to legally move their corporation to the Republic of Ireland. The 12.5% rate applies to domestic and foreign firms.








How an increase in UK corporations tax could be perceived as a good idea by the gov is far beyond my understanding of macro economics. Total foreign investment in the UK in 2008 was 97Billion, for the same period the USA alone invested $146Billion in Ireland. The UK's special relationship with the USA, does indeed look rather special.


The UK has a unique and increasingly internal problem, it simply does not attract foreign investors, instead it hemorrhages money abroad at a rate of 3 to 4billion every month in trade deficits. It has been around 5% of the UK's GDP for a number of years now, a long time before the recession. Heres a short but interesting read... http://www.moneyweek.com/news-and-charts/economics/the-uk-trade-deficit---does-it-matter.aspx




England has its head royally shoved up its own arse as usual. Higher corporation tax will only mean corporations will LEAVE the UK, not be attracted to move here. More job losses and more debt for the UK government to raise our personal tax's. Where are Robin Hood and Guy Fawks when you need them?
_________________
Powerful UK Outdoor Advertising http://www.AdvertisingGuerrilla.com
& Unique http://www.Ireland-Advertising.com Creative Advertising Ireland
Back to top
View user's profile Send private message
paul
President
President


Joined: 15 Oct 2002
Posts: 8314
Location: UK
11706 ants

PostPosted: Fri Jun 11, 2010 7:02 pm    Post subject: Reply with quote

So what's involved in moving your operation to the Republic. Do you have an office out there? Have you even been?
_________________
UK Hotels - UK Selfcatering
Luxury Travel - Lake District Apartment
Back to top
View user's profile Send private message Visit poster's website
Kay
President
President


Joined: 07 Jan 2009
Posts: 3079
Location: Mostly SE Asia
4173 ants

PostPosted: Sun Jun 13, 2010 12:59 pm    Post subject: Reply with quote

Quote:
As the UK's main rival in Europe that speaks English, Ireland is far more globally aware, it is part of Europe, has the Euro as a currency (you would not believe how many European and US companies are put off by the volatile nature of the pound and exchange rates). Many of our own clients were secured after we made this change.


You could say many of the same things about Malta. It used to be primarily a destination for retired expats. Now that it has joined the EU, it's also attracting a lot of younger people to work or set up business there. There's a lot of larger companies relocating or setting up there too, eg, many online gaming ones, plus there's a big HSBC call centre, etc.

There's dedicated Malta forum on my expat website (link in sig) so I get to see a lot of info about this kind of thing every day. Actually, I'm off to Gozo/Malta soon for a few weeks, partly on holiday but I'll also be keeping my eyes peeled for business opportunities.
_________________
http://britishexpat.com


Last edited by Kay on Mon Jun 14, 2010 4:39 pm; edited 1 time in total
Back to top
View user's profile Send private message Visit poster's website
AdvertisingGuerrilla
Executive
Executive


Joined: 25 May 2010
Posts: 137
Location: UK & ROI
156 ants

PostPosted: Mon Jun 14, 2010 3:52 pm    Post subject: Reply with quote

Here you go Paul...

http://www.basis.ie/home/home.jsp?pcategory=14003&ecategory=14003&language=EN



Amazingly you don't need to register a business in the Republic of Ireland to pay Irish tax rates. No need for a holding company like Malta, I will not go in to too much detail on here, but it is something any competent accountant can advise you on.


Best of luck in your search Kay, remember to relax on holiday! Very Happy
_________________
Powerful UK Outdoor Advertising http://www.AdvertisingGuerrilla.com
& Unique http://www.Ireland-Advertising.com Creative Advertising Ireland
Back to top
View user's profile Send private message
Kay
President
President


Joined: 07 Jan 2009
Posts: 3079
Location: Mostly SE Asia
4173 ants

PostPosted: Mon Jun 14, 2010 4:38 pm    Post subject: Reply with quote

Thanks. Very Happy I'm not planning to set up a company in Malta, not at this stage anyway. It's more a case of getting to know people and making some new contacts.

Re Ireland, it's something I might look into in the future. I'm a dual national, British and Irish, so I wouldn't have any residency problems there. Malta has a variety of different types of residency categories for foreigners, even when they're EU citizens. If I went to Ireland, I'd be Irish - simple as that. Cool
_________________
http://britishexpat.com
Back to top
View user's profile Send private message Visit poster's website
maha22
Temp


Joined: 21 Jul 2010
Posts: 1

2 ants

PostPosted: Thu Aug 12, 2010 5:42 am    Post subject: Reply with quote

Technically if your wife is in the UK long enough to file a tax return for a particular year and she is not regarded as a non dom, then she will need to report her world wide capital gains including profit on her half share of the US house for that year. In practice, she will have already paid US CGT on the house and there will be an offset therefore she will be only responsible for the difference.

You don't say how long you have owned your London house but I presume you have elected this for principal private residence relief?

Look into whether you are considered non dom as this would mean only your UK assets are taxable. If you hold a greencard and had your children in the US, she should be considered non dom at least until she expatriates.

Edit: if you are non dom you can choose to be taxed in the UK on a remittance basis so just keep the proceeds off shore and you will not have to declare the asset or pay any UK tax on it.
Back to top
View user's profile Send private message
whellun
Temp


Joined: 31 Aug 2010
Posts: 1

2 ants

PostPosted: Tue Aug 31, 2010 8:52 am    Post subject: RE: Tax in the UK Reply with quote

I never hear that , you said that all is ture? If it was , I must consider somethiong .
Back to top
View user's profile Send private message
Kay
President
President


Joined: 07 Jan 2009
Posts: 3079
Location: Mostly SE Asia
4173 ants

PostPosted: Tue Aug 31, 2010 11:16 am    Post subject: Reply with quote

Whellun, I'd be surprised if UK non dom matters would affect you. How's business in China?
_________________
http://britishexpat.com
Back to top
View user's profile Send private message Visit poster's website
chrisgayle
Temp


Joined: 19 Jul 2011
Posts: 2

3 ants

PostPosted: Thu Aug 04, 2011 5:26 am    Post subject: Reply with quote

Taxation in the United Kingdom may involve payments to a minimum of two different levels of government: The central government and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England and Wales, Council Tax and increasingly from fees and charges such as those from on-street parking.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    AardvarkBusiness.net Forum Index -> Accountancy & Finance Forum All times are GMT + 1 Hour
Page 1 of 1

 
Google
 
Business Forum Sport Forum Travel Forum


Powered by php B B © 2001, 2002 php B B Group

AardvarkBusiness.net Business Search Engine & Directory