UK Taxes Raising - How to Avoid Them
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- Опубліковано 18 кві 2023
- UK is rising their tax rates AGAIN! Here's how to avoid them
If you're a UK resident it may be the good time for you to think about tax structuring. In this video we'll be covering your options and what you should be doing in order to legally pay less tax.
Corporate tax in the UK just jumped from 19% to 25%, which is quite an increase in your tax bill. So, what can you do about it? Can you live in the UK and pay less tax? What if you want to form an offshore company, would that decrease your tax bill?
We'll cover everything you need to know about the UK corporate taxes, and how to legally decrease your tax bill in the UK.
Things to pay attention to:
-Management and control rules
-CFC (Controlled Foreign Company) rules
-Transfer pricing
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Introducing Michael Rosmer, the true modern-day Renaissance man and international entrepreneur, who has been mentored under top international tax attorneys.
He is widely regarded as the foremost international tax expert for legal cross-border tax planning, with extensive experience in immigration, residency, and second citizenship for those seeking a plan B, asset protection, global offshore banking, and payment processing.
Michael leads a team of lawyers and accountants who are top experts in their respective fields. This multi-lingual, multi-national team has worked with digital nomads, entrepreneurs, and investors from 62 countries, providing practical real-world multi-dimensional solutions for their clients.
At Offshore Citizen we understand that each individual's situation is unique. Unlike most industry service providers, we do not push any particular country or solution. Instead, we analyze your individual situation and custom-tailor the best countries and strategies for you, drawing on every part of the globe.
With Offshore Citizen, you can rest assured that you are in the hands of professionals who have your best interests at heart. Let us guide you through the complex world of international tax planning, immigration, residency, and second citizenship.
Contact Michael today for a personalized consultation and take the first step towards securing your financial future.
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It's becoming a real headache to be entrepreneurial in the UK. Personally I'm now in my second year living in Manila ( yes there is a fancy part and yes it's pretty hot) I have one tie on the UK residency test after selling everything I own in 2021, including my last ecom business / properties / cars / even the pictures on the wall etc ..., so I think this year I can do 120 days in the UK and after the second year I can do 180 days and still remain non resident. The next business is also e-commerce and I plan to register a US LLC , likely in Delaware. That e-com store will sell to the UK and US but being non resident in the US "should" pay no tax on profits ( will be subject to state taxes, but so was the last one and it was never an issue as they get collected automatically by the platforms) , and me bing non resident in the UK - I can transfer profits / funds without paying UK income tax. As for being in the Philippines, they have a tax treaty with the UK and don't tax "resident aliens" on foreign income..... You need to be an entrepreneur just to work out how to position a start up these days. It is a big life change, but crap weather, increase in crime and general anti social vibes in the UK was enough to push me over the edge and look for a better life elsewhere. I would add that I'm 43, not married with no kids, which makes the non-residency and selling everything I owned part a lot simpler. Good luck to all and don't let the Basta£ds grind you down :)
Great stuff, thanks 🙏
Could you make the exact same video with some options for solopreneurs ?
Interesting video, thanks Michael
Always a pleasure! Any thoughts on the topic?
@@OffshoreCitizen I'm about to leave the UK as a result as that is the most effective way to reduce taxes overall. The rough plan is to draw a salary from the UK company which would be an expense to the company (and therefore reduce the corporation tax bill) but live in a tax free country where it would not be taxable personally. I can't move the company as there are significant operations in the UK and I only have UK customers. Although I have my accountants in place, I'm actually going to book a call with you within the next few weeks to see if you can "kick the tyres" and let me know if there is anything I maybe missing.
As a UK resident, it looks like it may be finally time to book a call! You're the man Michael 🙏
Looking forward to discussing
Agreed, I'm reluctantly leaving too. They've finally pushed it too far.
@@lmurphy6333 where you planning on going?
What do you advice for solopreneurs from the UK?
Solopreneurs will have a tough time if they want to stay there. If you're opening to relocating there's lots of options
Yeah, it's really is a forget (or something that starts with F) the UK sort of period in time for business atm. Looking to move as soon as possible, but where is a good question. I want five things for wherever I move to... 1) quality of life (nice weather but not too hot preferably), 2) lenient tax laws relative to virtual businesses, 3) really good internet services. 4) quality banking services. 5) Preferably a place I don't have to learn a new language. Now sure if such a place exists, but I keep looking.
Lots do discuss. Feel free to reach out and we'll be happy to assist
😂 The last sentence about trading killed me.
Would be interesting to hear your thoughts on where in the world would work for traders (day and swing) as I get a feeling there are a few of us watching.
I've done some videos about that in the past you should be able to search for on the channel
@@OffshoreCitizen I've watched them all 👌
Cyprus
@@villageintheshire
I'm torned between Gibraltar, Malaysia and Belize.
Still need to confirm that options aren't an exception wrt capital gains exemption
@@qwertydebutant5453 😮 Belize...? I can't think outside the Alps region so hat's off to you. Nice keyboard sequence BTW.
UK citizen here. Planning on being a digital nomad. It has just become a joke our tax system. Little incentive to invest here too. You are probably aware of the 60% tax trap here once you go over 100k as a result of the depreciation in personal tax free allowance as wage increases
Where are you planning on traveling?
literally in the same boat mate.. sometimes you just wonder after all the hard work.. what's the point xD
If we are being truthful to ourselves, just like the rich, taxes can be a big pain. Income tax, value added tax, property tax, etc. Paying taxes is good, but we could also create our own tax havens. I personally put my money mostly in the stock market, since its appreciation is not taxable, and then when I sell, I find ways to make the income non-deductible in taxes. I 'm currently sitting on more than $327k of cash, and I'm definitely throwing it in the market. Just thinking of how to not lose it all, since the market is red.
It upsets me how simple things like this are not taught in school, and then people complain about taxing the rich everyday, as though the rich should pay for their own ignorance. I have been doing the same thing myself, using the market to shield myself from the market. But I hate making mundane decisions, so I just invest through an advisor, making good profits, avoiding taxes, while doing very little work
The only option i can see that has bature and are good taxes and safty is switzerland the other option is if yiu like to live in a city sort of ? Thank you
Malaysia, Thailand, various parts of eastern Europe all have nature, safety and good taxes. Switzerland isn't that low tax
@@OffshoreCitizen lumpsum of 300k yes malasya seems to be most intresting .
Yeah it's pretty good
There's also short term (3-6 year options)
Hey Offshore Citizen I just want to clarify something, I know US-UAE doesn’t have a tax treaty in place. I’m a U.S citizen, if I register my real estate business in Dubai & become a resident. While living in Dubai I.e running the day to day operations. I’m not subjected to paying U.S taxes on income i’m generating from UAE, due to the fact that UAE has no income tax correct? Plus U.S citizens living abroad in the UAE are only required to file US taxes anyway correct?
You should be able to qualify for the FEIE (Foreign Earned Income Exclusion)... assuming you stay outside the US 330 days per year. You can shield $120K per year from taxation (twice that if you're married). Note however, that this only applies to "earned" income, and not "unearned" income.
Not really accurate because the UAE company will be a CFC.
It's a complex question because it depends on the nature of the income and assets of the company.
For specific guidance the best is to send us a message through www.offshorecitizen.net or book a call
For you personally you'll be US taxable above whatever exemption levels you can qualify for, which is probably the FEIE limits
So with me being a U.S. citizen living abroad with a Golden Visa, I’m still subjected to tax on my worldwide income correct? With my UAE company being a CFC let’s say the nature of the income is real estate & I own the property outright with no loans associated with it. Let’s say the business Generates 50 Million AED which is equivalent to 13.6 Million USD. Am I excludible from the whole amount that is earned?
So with me being a U.S. citizen living abroad with a Golden Visa, I’m still subjected to tax on my worldwide income correct? With my UAE company being a CFC let’s say the nature of the income is real estate & I own the property outright with no loans associated with it. Let’s say the business Generates 50 Million AED which is equivalent to 13.6 Million USD. Am I excludible from the whole amount that is earned?
There is no tax on betting in UK. Therefore day traders can use spread-bets and incur no tax. However spreads might be worse. No need for a foreign company from a tax perspective.
You should watch 'Do traders pay tax?' by Jason Graystone and read a comment left by BornToDolt. Probably the best explanation I've heard to date.
Can a UAE company get a multi currency account like wise ? (Wise isn’t in UAE anymore)
Multi currency yes, wouldn't call it exactly like Wise
@@OffshoreCitizen I need a US 'local' account similar to what wise has so US customers can send me money in USD
You're describing two separate things
One is the ability of clients to send you USD that's easy they have it almost everywhere
Then there's a local account, which is really about payment rails like ACH that you won't typically find but it's questionable if it's necessary
@@OffshoreCitizen yes I want them to be able to send me use easily.
If your a british citizen and you live in the Uk 5 months a year but live in another country 7 months a year and have a home there, but your family is in UK and your business is in UK will the tax treaty make you a UK tax resident or a forigen tax resident. I wonder..
My solution was, last year, to move to the Isle of Man. One year as non-UK resident under my belt now (according to their SRT rules). My issue is, to the most extent, personal capital gains. It's just a shame that IHT is domicile-based - will need to figure that issue out later...
How do you like living there?
I think if I was going to leave UK anyway I'd likely choose somewhere with better weather
@@OffshoreCitizen Beautiful island, view of the sea here, great walking out in nature, not too hot, easy option for me (no visa needed - just move). It was the immediate easy/interim option, while I wait for certain things to improve (not discussing my finances on YT). Not necessarily my final destination...
I was really considering IOM, but idk, the weather is not so nice.
Did you consider Jersey as an alternative?
@@OffshoreCitizen And Guernsey. I was plaaning to move, temporarily rent, and then buy a house. Easier to get property here. But my financial circumstances have significantly changed (for the worse) since I moved, so property purchase is off the agenda for now.
The dividend tax free allowance in UK has been reduced from 6 April 2023 to £2k and therefore receiving dividends is less attractive. Also more generally I should mention that deposits in banks in Andorra exceed Andorra's GDP. Therefore in an extreme case deposit insurance in Andorra may not be credible.
It's more about the rate than the tax free allowance on dividends. The allowance was never large enough to cover any sizeable income.
Re Andorra, I've mentioned quite a few times in the past if you need to worry about deposit insurance you're probably off to a bad start. But yes point well taken
UK is a very indebted economy, a service economy living beyond its means, african chronical negative trade balance so pm Truss lasted 40 days cause she wanted to lower taxes, creditors went mad, seems they need money , expect more rising taxes.
Likely true and not just in UK I'd expect rising taxes across a lot of the world
@@OffshoreCitizen Economy seems boring for the general public, but eventually hits us all. Appealing your excelent knowledge of the whole picture , a good topic would be ''Delusional , Unrealistic Economies' those who produce nothing , export less , live off debts, irrelevant in the world context but spend and live like millonaires.
Damn you really know your stuff!
Would removing your UK tax residency (no tax residency) and forming a UK LLP make you effectively tax free? Seems like a no-brainer if you were happy to leave the UK for a majority of the year - or am I missing something?
Depends on the substance of the company. It's not just about you it's also about the company
@@OffshoreCitizen
Would it be the case for those of us whose sole business activity is trading & dealing in financial assets// investors/ traders?
Q: how did rich got rich?
Ethical or moral ways/methods maybe..?
Totally depends on the person.
There are plenty of people who ended up rich through all 3 categories
1. Value creation
2. Immoral extraction
3. Inheritance
@@OffshoreCitizen Agreed, all those three ways landed ppl into richness of wealth. I am against the immoral methods. Others are just fine.
However the point to be noted in our current times is that the ppl in the driver seat of the "economy" which basically produces / has produced inflation at some point of time are usually the ones who got rich via shortcuts & deception using their "intelligence".
Getting loopholes put in tax laws etc.is also their doing.
Covid pandemic is also the doing of such get rich quick type of immoral idiots. In fact all sorts of chaos among the population is their doing. All such corrupt ppl end up on #WEF platform to plan more of future pandemics & chaos.
know any good books to read on finances?🙃
Depends on what area
Warren Buffett and the Interpretation of Financial Statements is good
This is soo wrong of the UK?
You need to talk to your video editor. The spelling mistakes are very distracting.
Thanks working on it