Getting fed up paying loads of tax

[amhsolutions]

So I am getting fed up with this country and the taxes you have to pay. To me its a complete and utter rip off, the more successful you are the more you have to pay. Dont get me wrong, yes I know we have a health service to pay for and lots of other stuff but its just way too much.

I am looking for advice on having a offshore company.

At the moment I am a director of a limited company and run the business obviously from the UK. The business can be run from anywhere in the world as there is no physical stock or assets.

Is there any accountants out there who can advise me on what would be the best approach to avoiding UK taxes?

 

[STDFR33]

Tax is the price of success.

An offshore company will be a non starter for a number of reasons.

 

[Adam93]

So I am getting fed up with this country and the taxes you have to pay. To me its a complete and utter rip off, the more successful you are the more you have to pay. Dont get me wrong, yes I know we have a health service to pay for and lots of other stuff but its just way too much.

I am looking for advice on having a offshore company.

At the moment I am a director of a limited company and run the business obviously from the UK. The business can be run from anywhere in the world as there is no physical stock or assets.

Is there any accountants out there who can advise me on what would be the best approach to avoiding UK taxes?

That’s the law unfortunately, we live in a democratic society. Although you think you pay lots of tax, believe me, there are thousands of people that probably pay significantly more.

Unless you move overseas and lose your UK residency (as an individual) you are not going to save as much tax as you think unless you commit fraud.

 

[Gordon - Commercial Finance]

I think the corporation tax rates for LTDs are really quite reasonable actually...

 

[amhsolutions]

I think the corporation tax rates for LTDs are really quite reasonable actually...

I don't, I think its a complete rip off.

 

[Paul Norman]

I am comfortable with paying tax to enable those less fortunate than myself to eat.

In years when I do better, I pay more. I like the years best when I pay a LOT of tax.

You keep paying it. You might be glad you did one day if your health goes, or your fortunes change.

 

[Adam93]

I think the corporation tax rates for LTDs are really quite reasonable actually...

I agree. Japan even considers the UK a tax haven now!

 

[amhsolutions]

This is half the problem with this country, we all just bend over and take it without kicking up a fuss.

 

[Paul Norman]

This is half the problem with this country, we all just bend over and take it without kicking up a fuss.

I agree. Those in poverty, those who are disabled, those who are old, are just taking the disdain of selfish people who can afford to pay tax. They should rebel more, and insist that you pay more to help them.

There are many problems, arguably, with this country. People having the decency to pay tax to support the requirements of society are not one of them.

 

[amhsolutions]

I am comfortable with paying tax to enable those less fortunate than myself to eat.

In years when I do better, I pay more. I like the years best when I pay a LOT of tax.

You keep paying it. You might be glad you did one day if your health goes, or your fortunes change.

So you're quite happy for your money to go to politicians pockets, and people who don't want to work? You work so they don't have too.

 

[Paul Norman]

I think the corporation tax rates for LTDs are really quite reasonable actually...

So do I. And there are generous tax breaks for some sectors, too, such as R & D allowances, which help companies to invest in new technologies.

But, broadly, if I make a nice chunk of profit, I pay some tax. I even, after doing so, have the rest of my profits left, so I can invest them in my business and build it further.

 

[Paul Norman]

So you're quite happy for your money to go to politicians pockets, and people who don't want to work? You work so they don't have too.

People who don't want to work? I know many people who cannot work. I am happy to help them. Obviously, the system is not perfect. But not paying tax won't fix it. And neither will starving the unemployed to death just because you have read the Daily Mail too many times.

 

[dotcomdude]

I am getting fed up with this country and the taxes you have to pay

After becoming disillusioned with our accountants never suggesting any tax-saving tips, I bought a few guides from www.taxcafe.co.uk and it has definitely helped to legally reduce the corporation/income tax that I pay.

 

[Adam93]

This is half the problem with this country, we all just bend over and take it without kicking up a fuss.

That's your opinion. This is a forum to ask for advice, not to vent your frustrations. Maybe you should write to your local MP.

As dotcomdude says, there are plenty of ways to reduce the amount of tax you pay with careful planning which are completely lawful. You will have to pay for the advice which you may or may not consider a rip off as well.

 

[amhsolutions]

That's your opinion. This is a forum to ask for advice, not to vent your frustrations. Maybe you should write to your local MP.

As dotcomdude says, there are plenty of ways to reduce the amount of tax you pay with careful planning which are completely lawful. You will have to pay for the advice which you may or may not consider a rip off as well.

Yeah because writing to my MP will do the trick.

 

[amhsolutions]

People who don't want to work? I know many people who cannot work. I am happy to help them. Obviously, the system is not perfect. But not paying tax won't fix it. And neither will starving the unemployed to death just because you have read the Daily Mail too many times.

Yes people who have no intention of working and are playing the system. If you want to help other people give your money to a charity. I am running a business to make money not to give it to other people who need it.

 

[Mr D]

Yeah because writing to my MP will do the trick.

Your MP will not know how you feel unless you tell them.

 

[STDFR33]

Yes people who have no intention of working and are playing the system. If you want to help other people give your money to a charity. I am running a business to make money not to give it to other people who need it.

I find it funny that you think politicians will take your money to line their own pockets, but charities won't.

 

[Mr D]

Yes people who have no intention of working and are playing the system. If you want to help other people give your money to a charity. I am running a business to make money not to give it to other people who need it.

You could move abroad to a low tax country and then deal with both the taxes and other costs you would have.

Charities also have costs - do you feel like supporting BT via a charity or via your taxes?

Or you could alter your business so as to avoid paying taxes. Pension scheme, research, acquisitions etc. Talk to a tax specialist.
I am happy to pay taxes to help run the country. Even the people you appear not to like still need to eat.
Maybe that will include you one day, you cannot know where you will end up.

 

[Financial-Modeller]

I hope nobody minds if I derail things by providing the OP with the advice that he initially requested!

OP, tax is complicated, and tax in another jurisdiction can quickly become more complicated by magnitudes. For this reason, do not follow advice from people on the internet about structures or jurisdictions without taking professional advice.

It is quite easy to move assets and operations offshore, but it can be incredibly difficult to repatriate assets, operations or income efficiently and legally when you want to.

Depending on the nature of your business activity, your financial requirements from that activity, and your ambitions in terms of residency (i.e. moving abroad during retirement) there may be a workable route. It is possible that a single company in Ireland and Cyprus might be a better option than multiple companies, partnerships and trusts across Delaware, BVI, Mauritius etc.

Be warned that good advice on anything in this arena will cost a lot of money, so the potential tax savings need to be significant.

As others have said, your first priority is to ensure that your existing tax liability is optimised in UK. Relative to most of the world, running a Ltd Co in UK can be done legally with very little personal and corporate tax payable.

Whilst in danger of going slightly off-topic, also consider indirect taxes and cost of living in UK (or wherever you end up residing). There is little point saving £10k in tax but ending up on an island where it costs £1k per month more to live due to importing everything and taxing that consumption!

 

[UK Contractor Accountant]

Aren't we one of the lowest rate in Europe- 17% from 2020?

https://en.wikipedia.org/wiki/Tax_rates_in_Europe

Isle of Man - 0% if you are interested.

 

[Newchodge]

I don't, I think its a complete rip off.

Our corporation tax rates are among the lowest in Europe.

 

[Gordon - Commercial Finance]

So you're quite happy for your money to go to politicians pockets, and people who don't want to work? You work so they don't have too.

I'm not happy that some people don't want to work and we need to pay for it, and I don't necessarily like the UK income tax system with its socialist tiered structure. Corporation tax on the other hand I think is extremely fair.
Do you have any idea how small a proportion of UK government tax revenues actually goes towards the welfare system though? In the grand scheme of things, its minuscule.

Decent infrastructure, moderate public services, an incredible health service which is free for everyone (directly - indirectly paid for by everyone though), these things are not free, nor are they cheap.

Is our government or our tax system perfect? No, absolutely not. But its a lot better than some countries rife with political corruption on a monumental scale where instead of paying for infrastructure and the other services I've mentioned, and on welfare for the population, government revenues are spent on gold toilet seats for presidential mansions, or dramatic defence capability.

Stop paying your tax if you like, and see if you continue to achieve a higher standard of living as a result? You will eventually lose access to the great things that paying tax affords you.

 

[SteveHa]

This is half the problem with this country, we all just bend over and take it without kicking up a fuss.

You could always move to another country, and pay tax there. Somewhere in the EU perhaps, amongst whom we have one of the lowest taxation burdens. Or the USA possibly, where they will tax the air that you breathe.

 

[Clinton]

You could always move to another country, and pay tax there. Somewhere in the EU perhaps...

Estonia seems to be one of the money laundering capitals of Europe. Just saying. And Tallinn is an incredibly beautiful place.

But I stay here and pay my little tax because life ain't too bad in the UK.

Maybe what the OP needs is a better accountant, not an offshore arrangement. If he's got a few million in annual income he might be tempted to take advantage of the fact that not all jurisdictions are fully compliant with OECD requirements, KYC and with declaring beneficial ownerships of corps and trusts.

HNWI or UHNWI inevitably use various arrangements to minimise tax paid. If the OP falls in that category and is not satisfied with his current tax advisers, I'm happy to make a recommendation or two.

 

[Ian J]

So I am getting fed up with this country and the taxes you have to pay.

There are plenty of places that you could move to with lower tax rates and Chad is the obvious one that springs to mind as you won't have to pay any income or corporation tax there at all.

The standard of living is much lower than it is in the UK but you get what you pay for

 

[Deleted member 59730]

Its strange how people think. I've come across a lot of offshore people. The Dubai Boat Club is full of them. It doesn't neccessarily make them any happier or more fulfilled. As my wife says, "God, aren't they boring. All they want to talk about is money. I'd rather talk to their Sri Lankan maids."

 

[MikeJ]

So would I. But I may be missing the point here....

 

[Mr D]

There are plenty of places that you could move to with lower tax rates and Chad is the obvious one that springs to mind as you won't have to pay any income or corporation tax there at all.

The standard of living is much lower than it is in the UK but you get what you pay for

Daily Mail costs more in some of those places too.

 

[Glenn Martin]

Out of interest can we have a ball park as to the level of profits or tax you pay that is so outrages. Are you in Google range?

At 19% we are one of the lowest rates of CT In Europe I have had enquiries from countries in France looking to relocate their head office as they pay 33% CT there.

There is talk of our rate dropping further to make us attractive to other countries.

Dont believe what you read in the press the offshore gig is not as easy as you may think unless you are making millions the cost of setting up schemes will not make it worthwhile

Be succesful pay your taxes and enjoy your business.

Greedy people spend so much time dodging paying their dues and stressing over hiding things that do not enjoy there wealth, up to the point when they loose the lot when someone tells them the scheme they invested in years back was a duff one and you now owe all the tax you thought you saved + a hefty penalty and you have spent the money elsewhere

 

[UK Contractor Accountant]

ells them the scheme they invested in years back was a duff one and you now owe all the tax you thought you saved + a hefty penalty and you have spent the money elsewhere

Film Partnerships anybody up for that?

 

[dan19900]

People who don't want to work? I know many people who cannot work. I am happy to help them. Obviously, the system is not perfect. But not paying tax won't fix it. And neither will starving the unemployed to death just because you have read the Daily Mail too many times.

Well if you're happy to pay more tax then you can pay some of mine if you like? I wouldn't exactly call paying 40%+ tax a bargain to be honest.

 

[Gordon - Commercial Finance]

I wouldn't exactly call paying 40%+ tax a bargain to be honest.

OP already mentioned they were director of a limited company. Anyone in that situation who is paying themselves in such a way that they incur 40% tax doesn't need to move offshore, they just need a lobotomy.

 

[Jeremiah@RHJ Accountants]

I would suggest speaking your current accountant and other accountants who can give you specific advice on your business and personal tax situation which I am sure you will not want to divulge on a open public forum.

 

[The Byre]

If the OP finds UK taxation onerous, he may like to try Germany or any one of the Scandinavian countries. In Germany, we pay 30% and 60% of HR costs go on tax and health insurance and other deductions.

 

[Mr D]

Well if you're happy to pay more tax then you can pay some of mine if you like? I wouldn't exactly call paying 40%+ tax a bargain to be honest.

You don't have to pay 40% plus. Can set up business and personal affairs to pay less.
Though some methods would also leave you with low income.

 

[JEREMY HAWKE]

We live in a country where we help those that have not been blessed with the skills the OP has .
We could just close the schools hospitals and the OP can burn his own rubbish as there wont be any dustcarts running

The OP could shutdown and go on holiday and then they would owe no tax as they made no profit . !

 

[Mr D]

OP already mentioned they were director of a limited company. Anyone in that situation who is paying themselves in such a way that they incur 40% tax doesn't need to move offshore, they just need a lobotomy.

Or like that person wanting to buy a house from company funds, they want the money now and won't take advice on keeping tax bill down.

 

[Mr D]

We live in a country where we help those that have not been blessed with the skills the OP has .
We could just close the schools hospitals and the OP can burn his own rubbish as there wont be any dustcarts running

That's both national and local government taxes sorted.
Oh wait, local also pay for fire brigade?

 

[dan19900]

OP already mentioned they were director of a limited company. Anyone in that situation who is paying themselves in such a way that they incur 40% tax doesn't need to move offshore, they just need a lobotomy.

Well I wouldn't know I've already moved. I thought corporation/dividends tax would work out over 40% on 200k profit though for example?
I assume OP is making decent money or he shouldn't be worrying about it.