Global Tax Planning

Offshore tax planning - It's a taboo subject where people either rely on gossip, or they are too scared to explore it.

Which leaves you in one of two positions (usually)

1. You could benefit in some way but you just don't know how
2. You are breaking rules without even knowing it and could be at risk of fines, penalties, interest or even imprisonment.

In this article I explain if you can benefit from moving your Company offshore, break the myths and explain the pitfalls.

Running a business is hard work.

You should be looking to maximise the return you get for all your hard work and effort.

But there is no magic pill.

Can I move offshore?

(This is a really complex area, especially for personal tax, so please take this as a general rule but seek personal advice.)

• If you live outside the UK for more than 6 months
• If your business is online
• Has no physical premises in the UK

Then you could potentially move your Company to somewhere like Dubai, that is currently 0% Corporate tax.

This allows you to save 19% tax on your profits in the UK.

Who can’t do this?

• If you live in the UK for more than 6 months in total across a year
• If you have physical premises or stock in the UK

What about personal taxes?

Generally if you leave the UK you can stop paying UK self assessment, but if you have ties here you have to keep paying tax. This is something you will need to have a personal assessment on with a Chartered Tax Adviser.

Other considerations

• Dubai is to bring in 9% tax on income earned.
• One could argue it’s 19% more expensive to live in Dubai anyway
• But if you move there and are also avoiding 37.5% income tax on dividends it could be worth it.

What happens when you want to move back if you have saved up say £250k in cash savings?

Any savings you earnt outside the UK during that period remain untaxed.