I will try and keep this brief...
We have been on an 'offshore' journey' for the past 2 years, learnt a lot and taken a few knocks which have cost us a considerable amount... We own a UK company which has a turnover of £1.5 million resulting in a net of £4ook. Decided to try and set up an offshore platform to allow us to extract profits. We enlisted a so called 'specialist' accountant who has set up a Isle of Man company on our behalf with a nominee director. This process has cost us circa £20k including his fees and the nominee for the first year (I know we have paid way over the top..) He then told us to set up another UK company to trade from and liquidate our current company to avoid red flags with HMRC (this would also get rid of a large corp tax bill)
The accountant has had trouble opening a bank account for our new company in IOM, at the moment he has just opened a Transferwise account, I really wanted a more nuts and bolts bank account on the IOM. As the set up was taking so long he advised we run an extended year on our old UK company, but also set up a new UK company (using a family member in South Africa) to invoice away some profit (this is a separate company from the new trading company we have set up so we can liquidate the original)
Long story short, we went to the IOM last week and spoke to a IOM tax specialist, the set-up our current accountant is proposing is not workable (apparently it worked 10 years ago)... Based on this new information we have decided the only 'legal' way to make this work is for us to move to the IOM. We are now in the process of making this happen by April for the new tax year. Once on the IOM we have management and control in the right place and a personal tax limit of 20%, all in this will save us approx £100K a year..
My question is... We currently have around £200K sat in the UK company which was set up by our South African relative (the company is 8 months old). The company is not VAT registered and only has a Transferwise account. Ideally we would like to invoice this money out of the company and close it down. We need to do this without connecting ourselves to the money but also shielding the South African relative from a massive tax burden. Could we simply set up a Seychelles company with a Transferwise account and invoice the money to that company and close the UK company? Would this raise any flags? Does the Seychelles company need a Nominee Director?
Once the money lands it will be used to invest in property (probably in South Africa or France). We aim for our IOM company to use profits to invest in property and long term we would like to bring the property bought by the Seychelles company back to the IOM company and close the Seychelles company.
I know it was far from brief....
Any thoughts really welcome!
We have been on an 'offshore' journey' for the past 2 years, learnt a lot and taken a few knocks which have cost us a considerable amount... We own a UK company which has a turnover of £1.5 million resulting in a net of £4ook. Decided to try and set up an offshore platform to allow us to extract profits. We enlisted a so called 'specialist' accountant who has set up a Isle of Man company on our behalf with a nominee director. This process has cost us circa £20k including his fees and the nominee for the first year (I know we have paid way over the top..) He then told us to set up another UK company to trade from and liquidate our current company to avoid red flags with HMRC (this would also get rid of a large corp tax bill)
The accountant has had trouble opening a bank account for our new company in IOM, at the moment he has just opened a Transferwise account, I really wanted a more nuts and bolts bank account on the IOM. As the set up was taking so long he advised we run an extended year on our old UK company, but also set up a new UK company (using a family member in South Africa) to invoice away some profit (this is a separate company from the new trading company we have set up so we can liquidate the original)
Long story short, we went to the IOM last week and spoke to a IOM tax specialist, the set-up our current accountant is proposing is not workable (apparently it worked 10 years ago)... Based on this new information we have decided the only 'legal' way to make this work is for us to move to the IOM. We are now in the process of making this happen by April for the new tax year. Once on the IOM we have management and control in the right place and a personal tax limit of 20%, all in this will save us approx £100K a year..
My question is... We currently have around £200K sat in the UK company which was set up by our South African relative (the company is 8 months old). The company is not VAT registered and only has a Transferwise account. Ideally we would like to invoice this money out of the company and close it down. We need to do this without connecting ourselves to the money but also shielding the South African relative from a massive tax burden. Could we simply set up a Seychelles company with a Transferwise account and invoice the money to that company and close the UK company? Would this raise any flags? Does the Seychelles company need a Nominee Director?
Once the money lands it will be used to invest in property (probably in South Africa or France). We aim for our IOM company to use profits to invest in property and long term we would like to bring the property bought by the Seychelles company back to the IOM company and close the Seychelles company.
I know it was far from brief....
Any thoughts really welcome!
