There are many territories where tax rates are lower than in the UK, and some contractors use intermediaries like offshore companies to reduce their tax liability.
What does IR35 mean for offshore companies?
Offshore schemes designed for tax avoidance must register with HMRC, so they'll know exactly what you're up to. Some of these are tax evasion schemes; they're illegal, and so are you for using them.
There are loads of pitfalls with offshore companies, not least because you could find yourself liable for back-taxes and NICs. And breaking the law means risking fines and prosecution.
Also, consider this: if your intermediary (UK or offshore) wasn't there, would the relationship between you and your client be considered as direct employment? If so, IR35 applies to you.
Join Tarpon and you don′t even need to think about all this.
To speak to one of our tax experts call 0800 434 6402.
