UK resident Contractor

[omaozeko]

Hi there,

I will soon be a contractor for a EU (non UK) based company while being myself based in the UK.

What would be a feasible way to optimize / limit my tax rate?

I am fine even with the most creative / exotic solutions.

Thank you

 

[Martin Everson]

What would be a feasible way to optimize / limit my tax rate?

Relocate away from UK ultimately.

Otherwise a UK company with as much deductions as you can make. See below post I made previously.

You can just use a UK company. In UK if your gonna be making less than £100k a year you can reduce your effective tax via deductions. i.e setup a company pension plan (basically a cash deposit product within a pension plan) and pay a tax deductible £40,000 a year into it. Deduct corporate expenses such as office, travel etc. Then pay yourself s tax free salary of £12,500 and then pay the rest in dividends taxed at 7.5% .

https://www.offshorecorptalk.com/th...ate-tax-residency-in-the-uk.27553/post-113297

 

[omaozeko]

Martin, thank you for your reply. I was actually hoping you'd respond because you have some of the best advice on this forum.

A cash deposit pension plan doesn't make sense because I won't be staying in the UK 2-3 years from now and don't want my money tied for a long time in a retirement scheme or other.

Beyond a UK company and juicing up deductions (travel, etc...), would it make sense to use an offshore setup with a nominee director/shareholder to bypass CFC?

Thank you again

 

[Gediminas]

Beyond a UK company and juicing up deductions (travel, etc...), would it make sense to use an offshore setup with a nominee director/shareholder to bypass CFC?

You will have to disclose the UBO information to the banks anyway. And if the banks report, they will report about the UBO. The nominees would hide you from the public records.

 

[omaozeko]

Isn't it the goal of the nominee who the company and bank account will be under? So I am nowhere seen as UBO?

 

[omaozeko]

Talking about a nominee UBO here btw. I guess the risk is that the person can run with your money? Is it a scam?

 

[John Andrews]

There is no such thing as nominee UBO unless you use a homeless person

 

[omaozeko]

There is no such thing as nominee UBO unless you use a homeless person

I'm a bit confused: if you use a nominee director and shareholder, how can anyone know you are the UBO? Isn't the point of a nominee to obfuscate the UBO? Meaning if your name is nowhere and you don't have direct control of the company and bank account.

 

[omaozeko]

(talking about the US here) (random word to get the count)

 

[Loisir]

Hey as I’m on complicated situation and I’ve went trought all the regulation also with my job lol.
The fact is :

nominee as like a screen between you and the public not you and the administration.The main purpose is to hide you from being public knowing .
Each nominee which I think the nominee director is the most important will give you POA mean they will act on your behalf as you told them . Means this is you that take each decision.
I was once thinking about hiring a nominee but don’t ou for the POA so technically the nominee will have full power without giving me the shareholder the right to conduct him . But it is a very risky scheme and I still tryna find solution about it .
An UBO is the one who get the dinero behind the company meaning you . Bank don’t give a f**k if Mr smith run the company they follow money and the money will go to you so your are the guy who take the cake so you are the UBO.
UBO Will be reported automatically depends on the fact that the countries is a part of any treaties. The Uk is a part of all treaties actually + more than 85 bilateral treaties . So 10000000% to be reported .
Solution : open bank account in the name of a homeless guy .
move from Uk
Open an account from a no disclosing jurisdiction and be able to put money in there without link to you .
If you transfers +100K from your Uk account to your offshore account Uk tax man will ask you too about this
Regards . ‍

 

[Loisir]

Where do you already park these 150K are they taxed

 

[omaozeko]

Thanks Loisir.

What if the company is under a nominee and the bank account is under the company's name?

There is nothing back to me? I'm confused how can anyone know there is someone else as UBO other than the director (who isn't me)?

Also talking about a US based company - where there is no public UBO registry.

Yes so far I have been paying taxes on my income.

 

[Loisir]

Because is simple.
If you don’t want the director f**** you and take control you will require POA
99% of nominee director don’t want to open bank account

This is a solution to kept the money at the company and not at a personal account and this is what I want to do. By that we will fall under the Martin Comment condition meaning 19% corporate tax on profit. If you don’t pay you.

 

[Martin Everson]

Beyond a UK company and juicing up deductions (travel, etc...), would it make sense to use an offshore setup with a nominee director/shareholder to bypass CFC?

No

Isn't it the goal of the nominee who the company and bank account will be under? So I am nowhere seen as UBO?

Think about what happens if you use a false UBO with bank etc. As soon as your account fills up with money and you call the UBO he or she may say "Sorry who are you and why are you calling about MY account? Please don't call me again or I will call the police on you. I am busy enjoying the money I earned"

Let that sink in for a minute when you say you are seen nowhere as UBO. Let me know how you would get out of that situation with no proof and without admitting to police, bank, taxman etc that you knowingly committed a criminal offense of installing a false UBO...lol.

 

[omaozeko]

Because is simple.
If you don’t want the director f**** you and take control you will require POA
99% of nominee director don’t want to open bank account

This is a solution to kept the money at the company and not at a personal account and this is what I want to do. By that we will fall under the Martin Comment condition meaning 19% corporate tax on profit. If you don’t pay you.

How about a backdated acquisition side letter? Essentially saying you agree to acquiring the company/bank account and that disallow any cash movement 6 months prior to signature? Would that work?

 

[forlac]

thiefs also steal from thiefs, better remind that, you can't trust nobody