UK Offshore bank accounts

[jaremore7]

Hi guys!

Here I'm just sharing a thought.

We all know that the UK is beautifully surrounded by 3 smaller set of islands that are not part of the UK per se, not part of the EU, and that have tax free banking (Isle of Man, Jersey and Guernsey) - Offshore banking

Since in the UK you are only supposed to declare income that is produced in the UK or brought into the UK....... could someone that lives in the UK be paid by american companies into those offshore bank accounts? As long as you don't physically bring that income to the UK you wouldn't have to pay taxes on it..... but you could use debit/credit cards linked to those bank accounts to pay for goods while on the UK.

I know the hard part is opening those bank accounts, but if you manage to open one, you could just put there all your Internet Marketing income, and avoid paying taxes in the UK.

Anyone doing this? Anyone with some knowledge about this?

Regards my friends!!!

 

[clopper]

Sounds like if you withdrawl it from cards and use the money in the UK then you are still liable for taxes for it. You are just changing the means of delivery and hoping there is no reporting. I guess if you can duck the authorities then you're golden,

 

[savvypro]

 

[iglow]

u simply use the card to pya for stuff liek food etc and dont pay taxes. but to buy home/car ull need to get money on urself with taxes

 

[jaremore7]

Thank you all for delivering interesting answers guys!

I'm meant to meet a Financial Advisor in a few weeks, but the anticipation was killing me and that's why I ask now.

For what I understand, the only "gray" area in all of this would be using that money on the UK(iglow points that if you just use it to pay for food and small stuff like that that doesn't need to be registered, you will be fine).

So we can be 100% sure that I'm a European citizen resident in the UK and I put all the income from the affiliates in Offshore accounts, and I DONT use that money at all in the UK (I just keep saving money and not using for any means in the uk) I will not have to pay any taxes at all. Is this right?

Thanks again for your help guys!

 

[savvypro]

Thank you all for delivering interesting answers guys!

I'm meant to meet a Financial Advisor in a few weeks, but the anticipation was killing me and that's why I ask now.

For what I understand, the only "gray" area in all of this would be using that money on the UK(iglow points that if you just use it to pay for food and small stuff like that that doesn't need to be registered, you will be fine).

You may not tell anyone, but every transaction is registered

So we can be 100% sure that I'm a European citizen resident in the UK and I put all the income from the affiliates in Offshore accounts, and I DONT use that money at all in the UK (I just keep saving money and not using for any means in the uk) I will not have to pay any taxes at all. Is this right?

Thanks again for your help guys!

What ever you do - if the money is in your name, your going to end up paying taxes.

 

[jaremore7]

What ever you do - if the money is in your name, your going to end up paying taxes.

Are you sure about this? I mean, do you know the current fiscal legislation for the UK? I believe that income generated abroad that you do not bring to the country you don't have to pay taxes.

For example, if I go to the Dubai while still being a UK resident, and I do some business there, I do not have to pay taxes nor in Dubai neither in UK as long as I don't bring the income to the UK or (buy anything with that money)

 

[Animal888]

As I understand it, all UK domiciled residents are required to remit returns and pay taxes on their worldwide income. You get a tax credit where you have already paid taxes in other countries, but you still pay equivalent full UK tax.

If you're not UK domiciled, then you must spend at least 6 months of every year out of the UK and even then you are likely to be flagged for investigation if you are right on that limit for several years in a row.

The IR are not renowned for limiting their investigations in terms of cost effectiveness - they may spend hundreds of thousands persueing you for tens of thousands...

If you're going to try this, at least be a little clever about it... form an offshore company with nominee directors. So long as you don't draw attention to yourself, you may get away with that while holidaying abroad on the company expenses

I should add, that this is not legal or tax advice in any way, shape, or form

 

[jaremore7]

Thank you very much animal!
That's the kind of answer I wanted to read!!

Do you recommend Gibaltrar for incorporating then? I've seen many different online companies that offer that kind of thing....but most of them look dodgy as fuck!!!!
Do you know any reliable company that offers this kind of service?

 

[oxonbeef]

I think everyone should carry a tax payers card.
House burning down? "sorry you ain't paid your tax"
Need casualty? " sorry ain't paid your tax"
Kids need educating? "sorry ain't paid your tax"
And the list goes on.
How can you expect to be part of a civilised country without contributing?
Pay your taxes or leave the country.

 

[chocolatemonkey]

"avoid" means tax evasion. i wouldnt get into that realm of possibility if i were you. spending it in the UK, plastic or not, is bringing it in, period

 

[clopper]

IDK man, if taxes were 5% I would pay them gladly. The check would be in the mail every week. But when the governments start taking 30-40% of what you make you begin to look for ways to get around it. Top tax rate in the US was 90% at one time. Kinda like, hey, lets JV but I'll be taking 90%.

I think everyone should carry a tax payers card.
House burning down? "sorry you ain't paid your tax"
Need casualty? " sorry ain't paid your tax"
Kids need educating? "sorry ain't paid your tax"
And the list goes on.
How can you expect to be part of a civilised country without contributing?
Pay your taxes or leave the country.

 

[BLACKHAT1984]

One thing I do know is the topic of off-shore accounts was brought up after the banking crisis and it is going to be completely clamped down on this year. There's some kinda legislation they're passing or something that requires all offshore account companies to register details with the government etc.

Here's a link mentioning it:
http://www.grant-thornton.co.uk/thinking/press_room/offshore_accounts_feel_the_hea.aspx

 

[oxonbeef]

u simply use the card to pya for stuff liek food etc and dont pay taxes. but to buy home/car ull need to get money on urself with taxes

Well if he set up his business right his company could purchase those as a
business asset and could pay himself a wage beneath the higher tax threshold.
What he should be looking at is forming an offshore company and having all
assets owned by the company.
There is a big difference between tax avoidance and tax evasion.
Best person to ask is an offshore accountant. Also forget Jersey Guernsey or IOM, look at Belize or panama But they'll get you anywhere if you peep above the radar.

 

[Animal888]

I'm out of date with the legislation, but as far back as the early 1990's transactions at a known tax haven would raise red flags. I would use a delaware corporation or similar. After all you'd be in good company with the likes of AmEx

 

[dotcomdesigns]

As already stated if you are a uk resident then you have to pay taxes on all income wherever it is earned. One way around this is to change your place of abode but that will limit your time in the UK to about 90 days a year max.

I have been caught by the tax man here in the UK. A few years ago I was making some serious money through an affililate business in the USA. They obviosuly paid from the US. I opened an offshore bank account, paid half into the offshore account and half into the UK account and declared on the money coming into the UK. I had property overseas too and lived there 3 months of the year.

The British government have been putting offshore and foreign banks under a lot of pressure to give up information about British citizens with accounts. My offshore bank gave them everything.

I received a notice of investigation out of the blue in 2007. Last year the tax man made me bankrupt. I lost pretty much everything by not doing my research. I got a 40% penalty on what I owed plus 6 years interest on the amount. Although I managed to pay the tax owed, the interest and penalty bankrupted me.

Seriously, you mess with the tax man and he will destroy you.

They told me that they have names of every individual who has had an offshore account in the last 20 years. They are coming for every one. They said it will take possibly 10 years to chase every one down. The ironic things is it's costing more to catch people than the amount of unpaid tax they are recovering.

Do you know the tax man is offering bribes to people working in Swiss banks for information on UK residents!

You know if I had changed my place of residency I wouldn't owe them anything!

Go to G00gle and search for offshore amnesty uk and you can read about the offshore account purge by the tax man in the UK

 

[oxonbeef]

IDK man, if taxes were 5% I would pay them gladly. The check would be in the mail every week. But when the governments start taking 30-40% of what you make you begin to look for ways to get around it. Top tax rate in the US was 90% at one time. Kinda like, hey, lets JV but I'll be taking 90%.

It is a sad fact that the people who benefit the country the most in the way
of commerce, trade and bringing revenue into the country are penalised the most.
Perhaps if they changed the system to where the lowest earners were taxed the
highest it might kick there asses into doing more.

 

[savvypro]

 

[BLACKHAT1984]

 

[adam.jn]