IT contracting in UK through offshore account

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zxcvbnm

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Ok - i have gotten a new job in IT contracting in london starting soon.

HAs anyone heard of this whole thing of setting yourself upo thrpough some company that chaqnnels money thrpugh guernsey?

One of the companies that set you up is [broken link removed],

If you do it through these guys you can retain 84% of your gross pay.
Whereas if you do it through a regular umbrella company your take home pay is normally around 63-ish%.

However - the question i have is using offshore accounts through guernsey dodgy?

Going by my research it seems to be a grey area.
I don't understand how it's a grey area?

Surely you either are tax-compliant or you are not tax compliant.

Can anyone shed any light on this?
 
ok - thanks for you response.It was quite informative.

i don't understand how the remainder of the earnings can be classed as expenses though. In what way could your earnings be considered an expense? That bit doesn't make sense to me.


So - is this legal?
If so, how come so few people do it.

WHy does this have a dodgy rep?
 
Thanks again for your response.

A bits i don't understand though is you say most people set up their own limited copmanies as thsi is the most efficient way due to claiming expenses.

In what way is it more efficient?

Because no matter how much expenses someone claims, they will very unlikely bring home 85% that the other system guarantees.

It seems strange that so few people use the offshore method given the large take home pay.
Given the high rewards i would love to get to the bottom of it one way or the other.
I'm releuctant to do it givenb the question mark hanging over it.
But it wold be a shame not to do it if it turns out that it is completely legit.

Are you ware of any sample cases that have gone to court? That would solve it once and for all.

Also - i am irish.
Lets say i used this system and in time it was determined it was offiially demed non tax compliant.
What would teh consequences be for me given that I m irish as oppsed to from teh uk?
Would that work as an advantage to me?
 
Yes - i am startying next tuesday week. Although teh contract has not been fully signed off yet.

I don't have a national insurance number.
Are you sure this is necessary?

I met the agent last week to give all my details, references etc. and one of teh questions on teh form was for my national insurance number. I didn't have one obviously. They justtold me to leave it blank. They didn't in any way seem concerned i didn't have one (keep in mind the contract is with teh agency as opposed trio teh company).

MAybe i don't need one immediatley? Or I can start oncde i have applied for one?


Also - i just saw teh following link. It seems there has been a case in court.

http://www.contractoruk.com/news/004726.html
 
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