Quote:
Originally Posted by Sly
Americans still have to pay American taxes... I am assuming Brits don't? Either way, if your solution is really that simple... somebody totally missed the ball on this law.
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It's really simple.
You own a company, so your company pays you a salary and you pay taxes over that salary.
If your company is UK based and it pays you the salary in the UK, then you pay the UK taxes.
Now if you open another company in France (for example) and make your french company pay you a salary in France, then you pay french govt taxes. Meanwhile the UK company stops to pay you your salary or pays you a minimal one, depending on the legal situation in the UK.
How do you make your UK company not win money? Simple, every month make your french company invoice your UK company for whatever money you have made, then pay it to you as salary.
Final result --> You are UK resident/citizen, but you are unemployed or with minimal salary in the UK, so government has nothing to tax. In exchange you pay taxes to the frenchies. Globalization at it's finest
You could move the entire company out of the UK, but it becomes complicated if you have inhouse staff and you pay them salaries.
You could do this by even setting another company in thailand, china or wherever you want, but setting it in some near country makes things much easier. Frace, Germany or Spain are one hour away from the UK (assuming you are near London) and traveling there is easy and completely unrestricted. You can take a plane/train in the morning, do all your bureucratic stuff and be back to your place for lunch (you will need to do that every 3 months).
Consult with a good accountant who knows how international stuff works. Setting another company in the EU makes two things very easy for you:
1 ) Accounting made really easy, and this is all about it.
2 ) No one can tell you are evading capitals or doing something illegal with the money. You are just moving it to another country into the EU, so all can be traced and audited in case of need... and it's 100% legal.
About VAT, the solution is simple. Depending on your company legal class you may not pay VAT at all, pay only VAT for services or pay VAT for everything.
If you don't pay VAT at all, it's no problem. If you pay VAT only for services, then sell your other company a product. I was selling pencils at 25k euro per pencil to one of my companies during several months until they fixed that company VAT situation. The taxes guys knew what was I doing, but they could do nothing about it because it's completely legal.
If you have to pay VAT for everything, then just assume that you will recover your VAT money at the end of each quartery or at the end of each year depending on the country where you place the new company law situation.