Internet Business Accountants

[spritch]

Hi All
is there such a thing as an accountant that specialises in internet businesses and the unique opportunities that their flexibility, in location, server location etc. offers.
For example, can I change my biz reg to somewhere offshore but live in the UK while my servers are in another country and not pay corp tax? You get the idea
Steve

[othellahughes]

Hi,
An enrolled Agent is someone that has taken a test given by the IRS. The test covers all topics of tax. You can also look for a CPA, but they generally charge more for services.

[Maslins]

There probably are specialist accountants who can help with that kind of thing (I'm not one of them).

However with regard to the specific scenario you mention, I don't think it's as simple as putting your server in another company & avoiding UK corporation tax.

If you run the company, and you still live in the UK, the company's central management and control will be UK based, making it a UK resident company. That would make it liable to UK CT on its worldwide profits (subject to double tax relief for taxes paid overseas).

Even if you did find a way to stop the company being UK resident, you would still be taxable in the UK on profits generated here. You haven't mentionned where your income comes from (ie where your customers are based).

[David Griffiths]

Hi,
An enrolled Agent is someone that has taken a test given by the IRS. The test covers all topics of tax. You can also look for a CPA, but they generally charge more for services.

That relates to the USA, not the UK.

[elainec100@cheapaccounting]

Hi All
is there such a thing as an accountant that specialises in internet businesses and the unique opportunities that their flexibility, in location, server location etc. offers.
For example, can I change my biz reg to somewhere offshore but live in the UK while my servers are in another country and not pay corp tax? You get the idea
Steve

I think you want a specialist in international business.

Remember though if you live in the UK you are subject to UK tax on income received.

[DavidT]

Offshore Corporations are rarely used to avoid tax, but rather control it a bit more and to a certain extent reduce it, though as the others pointed out you will still be liable for tax on your income.

As for the accountants specialising in internet business... some accountants do actually mention speciality areas, though many don't and it will depend on their experience and to some degree the way they are set up to provide services.

David Toohey

(http://www.accountantscircle.co.uk/) (http://www.accountantscircle.co.uk/FindAccountants/FindMeanAccountant/tabid/529/Default.aspx)

[JGOffshore]

Hi All
is there such a thing as an accountant that specialises in internet businesses and the unique opportunities that their flexibility, in location, server location etc. offers.
For example, can I change my biz reg to somewhere offshore but live in the UK while my servers are in another country and not pay corp tax? You get the idea
Steve

There are no doubt many accountants who specialise in internet businesses but I wouldn't go to them with the idea that you can register a business offshore so as to have no need to pay corporation tax in the way you suggest. This sound very like tax evasion (illegal) rather than tax avoidance (legal).

Even if you set up an offshore business and were not involved in managing it, for example by employing local directors for the business, you would still need to advise HMRC that you owned the shares. Yes, you could use nominees, but you would still be the legal beneficial owner.

Once you have told them then you would need to account to them for the profit of the offshore company and pay UK tax on that.

You get the idea. Now I'm not saying that it is impossible to reduce tax in a legal manner by the use of offshore companies, but it is complex and done properly is costly. You might end up paying more in costs than you save in tax.

If you want to discuss your ideas more fully PM me or contact me via my website www.jamesgreenandco.co.uk (http://www.jamesgreenandco.co.uk) and I'll gladly explain in more detail.

[frauke]

I don't specialise in the internet business, but I have a number of clients who are in the internet business. I know a lot about ISP's, VOIP etc...

Ironically I have clients the opposite to what you seem to want to do - UK Companies trading in the UK, but the shareholders, directors etc are not UK residents and never come to the UK etc. This is only possible or workable because they are internet businesses.

What I don't do, is practice work for Companies that turnover more than 1m in any industry, even ones I know a lot about. This a personal choice, (mainly because I think it would be detrimental to my existing clients if I did) and I am quite happy to let others have this type of business!

[DFL]

Very wise Frauke to know your target market and profile client - try and be all things to all people and it won't usually work. Run a business with your strategy and it usually will.