Tax/Offshore Banking.. Advice needed please.

[FlawlessPlan417]

Hello,

I wanted to ask if my understanding on this is right.

If someone who is a resident in the UK was starting an online business, But the profits made by the business was put straight into an offshore account, Am i right in thinking based on my knowledge of how offshore banking works, The total profit each year by the business will have low or no Tax based on location of the offshore bank and the only Tax/NI to be paid would be the ones associated with salary to the owner of the business?

Also what are the risks associated with offshore banking?

Thanks in advance for all replies.

[oldeagleeye]

You are wrong. Where you bank is irrelevant as is where you company is registered. If you are based in the UK and trade in the UK you are liable to UK taxes.

It is possible however to set up trusts off-shore and hold IP where say the rights to a book may be tax free. You may also be able to avoid adding vat to items if say they are dispatched from the Channel Islands.

You really do need to consult a specialist accountant however. Just signing up to an offshore company and bank account in Delaware for instance could leave you with a hefty fine and possible imprisonment for deliberate tax evasion.

Rob