Do I need to pay TAX?

antrobus

Randvegeta wrote: »

I have already explained this. I was not born in the UK...What's so difficult to understand about this?

But earlier you said;

Randvegeta wrote: »

I am not here on a student visa. I am UK citizen (born British), and have completed my studies over a year ago. Just in case this was unclear.

That might explain the difficulties some of us are having. I would suggest that you get your story straight before you start talking to HMRC.

Randvegeta

I said I was born British. I never said I was born in Britain. I was born overseas to a Britsh parent. What is so difficult to understand.

FYI, I hold dual nationality. The country of which I was born is the country of which both my parents reside and are domiciled.

bengalknights

Randvegeta wrote: »

I said I was born British. I never said I was born in Britain. I was born overseas to a Britsh parent. What is so difficult to understand.

FYI, I hold dual nationality. The country of which I was born is the country of which both my parents reside and are domiciled.

If you are present in the UK for more than 180 days and have a income coming in then tax must usually be paid on it unless that income is from abroad in which case the difference in tax rates between the relevant countrys would be paid.

chrismac1

The name of this forum is "Cutting tax". Whilst I enjoy the odd digression to point out the many deficiencies in the Uk tax system, personally I think digressions about the morality of attempting to Cut tax are better posted on other sites, or at least somewhere not headed up "Cutting Tax".

Randvegeta

I'm starting to think that this thread has become too long for people to bother reading anything and are just being unhelpful at this stage.

Cook_County

I think the OP should familiarise him/herself with the decision in the Laerstate BV case - a business is taxable if managed and controlled in the UK. I am confused why this is business is not subject to UK tax, does the OP have counsel's opinion to the contrary?

Randvegeta

Cook_County wrote: »

I think the OP should familiarise him/herself with the decision in the Laerstate BV case - a business is taxable if managed and controlled in the UK. I am confused why this is business is not subject to UK tax, does the OP have counsel's opinion to the contrary?

I've been here for 2 months. The business was established over 4 years ago in another country. At what point did it become a UK business?

Did you not read the part about the fact that the following are located in that country?

1. Office
2. Equipment
3. Staff
4. Accountant

So all of a sudden, I'm here for 2 months and you think I am a TAX evading person? I think you're an idiot more than anything. Someone without a clue!

John_Pierpoint

Calm down folks - before abusively dismissing well established posters, consider the evidence.

Your company as an independent entity could be considered as a legal fiction by HMRC. How is your company structured - it sounds very English? (Cyprus?) Anyway an English company requires two directors, who is your other director?

If HMRC can persuade itself that you alone are the controlling mind for your company and you are resident in the UK - you can expect trouble. At the moment your imports of 7K of profit into the UK are most likely "below the radar" but beware of "hubris".

http://www.farrer.co.uk/index.php?option=com_flexicontent&view=items&cid=105%3Aour_briefings&id=1185%3Athe-question-of-company-residence-laerstate-bv-v-hm-revenue-customs&Itemid=2

http://www.taxation-advice.com/tax-articles-for-business/102-offshore-companies-directly-owned-by-uk-residents-are-they-tax-effective.html

Personally I fear for the UK's future as we stifle entrepreneurial activity with excessive taxation in a global economy. Having about 50% of the population dependent directly or indirectly on government spending does not bode well for our future in a world where capital can flee to lower tax environments.

Bankrupt governments scrabbling about trying to to raise more taxes - just look at the gold price and the value of the Swiss franc to see where capital is fleeing this country and other similar jurisdictions.

chrismac1

Perhaps if the guy had more money he'd get professional advice. However, as I see it he has a PE in another country and is here on a pretty short term basis as a student, with a stated intention of leaving this country. So at the very least he has an argument against any interest HMRC might show in taxing this company of his. If I were him, I would carry on below the radar and have my arguments ready for the day the dreaded brown envelope arrives.

Randvegeta

In my country, income earned from overseas, unless from services rendered domestically, is TAX free. Now I am learning that the UK find income earned overseas, for services rendered overseas, established by people overseas, is TAXable. The only system I've heard of that's worse is the American system, where regardless of where you live, your income is TAXable by the U.S. Gov.

I expect to be here for 1 year. I am no longer a student. I graduated in July 2010. My GF is a student and she will graduate in July 2012. I will therefore expect to leave in June 2012. Since I have been here since June 2011, I will be here for an entire year, though I will be travelling a great deal. I do expect that I will be here for around 8 - 9 of the 12 months.

I will have to go back to my country in order to take care of business, so to speak. That being said, it should mean the management falls under that country, and not the U.K.

Indeed there is another director, though it is a title only. He is not located in the UK.

My hosting business is fairly self sufficient actually. As a software developer, I have developed a number of automation softwares in order to handle 90% of the work required of me. I have staff to handle all the physical work, and an accountant who also doubles as the company secretary. All this is done overseas.

I oversea what is going on, but in terms of actual work? I need not do all that much. I am actually working on a new business and am in he middle of writing the software for it. I had considered establishing this as a UK company but it is simply not attractive to do so.

Chrismac1, I'm not sure if 'staying under the radar' would be considered legal, but I suppose it's that or go see an expensive accountant. The question is, would the TAX cost more? Or the accountant?