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OnlyFans VAT and UK LLP

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Dec 10, 2018
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t.me
#1
I was looking for an alternative to US LLC, and I found UK LLP interesting. I don't need asset protection or anonymity, and it's cheap and easy to maintain for 0% tax with good banking options.
The other day I tried to open an account at OnlyFans to understand why it was so successful, when I made a cheap tip I noticed that they are charging me UK VAT of 21% when I'm actually living in Hong Kong.
Does it mean that my potential UK LLP company needs to charge 21% for all B2C invoices?
Thanks
 
#2
GiGoGo said:
The other day I tried to open an account at OnlyFans to understand why it was so successful
Click to expand...

Really? ns2

GiGoGo said:
The other day I tried to open an account at OnlyFans to understand why it was so successful, when I made a cheap tip I noticed that they are charging me UK VAT of 21% when I'm actually living in Hong Kong.
Click to expand...

According to their terms they have a UK entity. Did they process your payment via their UK entity for your UK LLC?

Fenix International Limited, with company registration number: 10354575 and registered address: Fourth Floor Imperial House 8 Kean Street London WC2B 4AS; Fenix Internet LLC, wholly owned subsidiary of Fenix International Limited.
 
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#3
GiGoGo said:
I was looking for an alternative to US LLC, and I found UK LLP interesting. I don't need asset protection or anonymity, and it's cheap and easy to maintain for 0% tax with good banking options.
The other day I tried to open an account at OnlyFans to understand why it was so successful, when I made a cheap tip I noticed that they are charging me UK VAT of 21% when I'm actually living in Hong Kong.
Does it mean that my potential UK LLP company needs to charge 21% for all B2C invoices?
Thanks
Click to expand...
The suspicious thing here is it being 21% when the vat rate is 20%, when registering for vat or the turn over exceeds 85k maybe they are charging vat but not declaring it did the receipt have a VAT Registration number on that was emailed to you? Vat should be displayed on receipts.
 
#5
not sure why everyone is more interested in LLP than LTD

Usually, the members of an LLP are treated as self-employed and will be liable to pay income tax on their share of the LLP's profits. On the other hand, a limited company is treated as a separate entity for tax purposes and it will pay corporation tax on the company's profits.

if you had a ltd company and it turned over say 20k or 40k but the company expenses were 20k or 40k then there would be no profit so no corporation tax.
 
#6
tellmehowitis said:
not sure why everyone is more interested in LLP than LTD

Usually, the members of an LLP are treated as self-employed and will be liable to pay income tax on their share of the LLP's profits. On the other hand, a limited company is treated as a separate entity for tax purposes and it will pay corporation tax on the company's profits.

if you had a ltd company and it turned over say 20k or 40k but the company expenses were 20k or 40k then there would be no profit so no corporation tax.
Click to expand...
Same for the LLP, or the LLC US...

LLP UK is better in case you (and your partner) are tax resident in a tax free country, so the pass-through works fine.
 
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#7
tellmehowitis said:
not sure why everyone is more interested in LLP than LTD

Usually, the members of an LLP are treated as self-employed and will be liable to pay income tax on their share of the LLP's profits. On the other hand, a limited company is treated as a separate entity for tax purposes and it will pay corporation tax on the company's profits.

if you had a ltd company and it turned over say 20k or 40k but the company expenses were 20k or 40k then there would be no profit so no corporation tax.
Click to expand...
UK LLP is an excellent setup if you live in a low/zero income tax country. For example, if you live in UAE and setup UK LLP then you will have a 0% taxed company in the UK but if you incorporate UK LTD then you need to pay taxes to the UK.
 
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#8
Incorporate a UK LLP, and then have both "designated members" as USA LLC's.

Pass through for taxation.

If you're interested more in privacy than putting money through the UK LLP, have the USA LLC's owned by the UK LLP.
 
#13
bibing said:
@netixone Please let us know how it ends up. This might be interesting for many of us
Click to expand...
Evening,

This is what I ended up doing, which worked with Starling:
1) Setup a UK Ltd co, with myself as sole director and shareholder
2) Setup an LLP which has a very similar name, owned by my two US LLCs
3) Setup an account with Starling, which is now active

Once I receive my Starling card, I will then do the following:
1) Move the shareholding of the UK Ltd into the LLP
2) Use a nominee director for the UK Ltd

This is how I will trade:
1) The LLP will be the public face within the UK.
2) Use the UK Ltd as the "billing agent" for the UK LLP

Notes:
1) The UK LLP was setup with one company formation agent, with registered office address
2) The UK Ltd was setup through a second company formation agent, with a different R/O
3) I have used different residential addresses for forwarding
4) I have not used anything "dark" - not worth the risk

Outcomes:
1) This does not provide complete privacy, but I think enough privacy for most people - where payments need taking. If it's just to hold stuff, and LLP on it's own is enough.
2) The public face is good enough, most people won't dig
3) It is not uncommon for LLPs to be owned by offshore corporations, or UK corporations

HTH
 
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#14
netixone said:
Evening,

This is what I ended up doing, which worked with Starling:
1) Setup a UK Ltd co, with myself as sole director and shareholder
2) Setup an LLP which has a very similar name, owned by my two US LLCs
3) Setup an account with Starling, which is now active

Once I receive my Starling card, I will then do the following:
1) Move the shareholding of the UK Ltd into the LLP
2) Use a nominee director for the UK Ltd

This is how I will trade:
1) The LLP will be the public face within the UK.
2) Use the UK Ltd as the "billing agent" for the UK LLP

Notes:
1) The UK LLP was setup with one company formation agent, with registered office address
2) The UK Ltd was setup through a second company formation agent, with a different R/O
3) I have used different residential addresses for forwarding
4) I have not used anything "dark" - not worth the risk

Outcomes:
1) This does not provide complete privacy, but I think enough privacy for most people - where payments need taking. If it's just to hold stuff, and LLP on it's own is enough.
2) The public face is good enough, most people won't dig
3) It is not uncommon for LLPs to be owned by offshore corporations, or UK corporations

HTH
Click to expand...
Good setup but will you update the new LLP Shareholders structure within Starling? If yes, is there a risk to have the account closed?
Do you know how to avoid paying UK corporate taxes if you bill UK customers via the LLP?
 
#15
Ness said:
Good setup but will you update the new LLP Shareholders structure within Starling? If yes, is there a risk to have the account closed?
Do you know how to avoid paying UK corporate taxes if you bill UK customers via the LLP?
Click to expand...

The UK Ltd has the Starling account. I've made changes to my UK Ltd with Starling (an older company) and nothing has been requested. The only time Starling asked me a question when I changed my residential address. I even changed shareholder without any queries from Starling, or my UK accountant.

The LLP structure itself will remain as-is.
 
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