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The Legal Use of Offshore Companies by, Charles Farran, Managing Director, Amanda J Molyneux & Company Limited.

The Legal Use of Offshore Companies by, Charles Farran, Managing Director, Amanda J Molyneux & Company Limited.

A great deal of the bad publicity around today is aimed mainly at private offshore Bank accounts. Many western governments use this publicity to great effect, but this is mostly used as a smoke screen to please public opinion and a great way to cover up their own in inabilities to control their countries budget deficits.

It has been our Companies policy for the last five years not to recommend Private offshore Bank accounts to avoid or minimise tax liabilities as this is clearly illegal. 

We do however, recommend and use Offshore Companies and Banks, better described as IBC (International Business Companies) for many reasons. IBC Companies are perfectly legal and offer many advantages outside of tax mitigation to Companies trading internationally. I will list some of the more obvious advantages: 

•   Confidentiality 
•   Holding Companies 
•   Cross Boarder Tax Advantages 
•   Double Taxation Agreements 
•   No Vat 
•   Tax Free 
•   No Filing of Accounts 
•   Asset Protection 
•   Holding of Assets 

IBC Companies are also ideal vehicles for Internet based businesses who wish to trade internationally. 

Offshore Banks: It is essential when purchasing an offshore Company to ensure that the offshore service provider arranges a Bank account with your Company. 

Amanda J Molyneux & Company provides a three currency Bank account with a Major World Bank with every Company we sell. Due to the highest level of reputation our Company holds with our Bankers we are able to supply a Bank account for your business, free of any credit score, so even if you have bad credit or even bankrupt we can still help you. 

For further details see our website at: http://www.molybank.com

Understanding the Tax crackdown for those wishing to leave the UK

Following a court ruling last week, it now seems that those wanting to escape the HM Revenue and Custom’s tax net will need to cut all ties with Britain if they want to avoid paying tax.  It would now seem that literally thousands of people who have moved or retired abroad will come under fresh scrutiny.  And simple ties to the UK such as keeping a British mobile phone, or a club membership could land those individuals in trouble with the tax man.

What are the residence rules?

• ·         If you are resident in the UK and are domiciled here then you can expect to pay tax on your worldwide income.
• ·         Generally non-residents are only liable for income tax and capital gains tax on money they have earned in the UK and not on their global income.
• ·         The latest HMRC6 Guidance states that:

Just because you leave the UK to live or work abroad does not necessarily prove that you are no longer resident here if, for example, you keep connections in the UK such as property, economic interests and social activities or if you have children in education here.

 How can I be certain that I have cut all my ties to the UK?

• ·         If you are British by birth, you need to sell up everything, not returning to the UK AT ALL for the first year.
• ·         You must live abroad for three years AT LEAST in order to avoid UK income tax and for AT LEAST five years to avoid UK Capital Gains Tax.
• ·         Then keep all UK visits to less than 91 days per year.
• ·         You will need to complete a P85 form when you leave, informing the Inland Revenue that you wish to claim tax relief or repayment of UK income tax.
• ·         If you still receive any income from the UK, you will need to still complete a UK tax return to declare your non UK resident status.
• ·         You will have to resign from any company Directorships.
• ·         You must take your spouse and children with you.
• ·         You must not continue to send your children to a British school.
• ·         You must transfer your bank accounts to banks outside the UK.
• ·         You must give up any UK mobile contracts.
• ·         You should resign from any clubs.
• ·         You should ensure that the electoral register is amended, so that you are entitled to vote from abroad.

How will the new rulings affect me if I have retired abroad?

• ·         If you keep a property in the UK and visit regularly you will now fall under the new scrutiny.  Therefore it is advisable to sell up and relinquish your right to stay in the UK.
• ·         Keep all visits well under the 91 day threshold.
• ·         The fresh scrutiny does NOT however consider it a tie to the UK where Grandparents who live abroad, pay their grandchildren’s school fees.

How does it affect me if I have moved abroad to work?

• ·         Subject to certain conditions, the HMRC usually treats those who move away on a full-time contract of employment as a non UK resident for the entire time that they are away working.
• ·         However your contract MUST span the entire tax year.
• ·         Visits to the UK must not exceed 183 days in any one tax year, or an average of 91 days over a four year period.

How do the tax rules affect overseas earners working in the UK?

• ·         You are treated as a UK resident the day that you arrive in the UK for tax purposes.
• ·         If you intend to be classed as having ‘Not Ordinary Resident Status’, which means you cannot remain in the UK for more than 3 years, it is possible to only be taxed on your UK earnings and your worldwide earnings cannot be considered.
• ·         However if HMRC rules that the UK is the ‘Not Ordinary Resident Status’ persons centre of interests, they may still liable for taxation on worldwide interests.  It is therefore advisable to seek appropriate advice.

We recommend that in all instances that you seek qualified professional advice.

Starting a Business with Bad Credit or in Bankruptcy

The Problem
It was never easy to start a business in the UK when you had a poor or bad credit file, and certainly almost impossible in Bankruptcy, but today with the insane attitude towards such clients by the UK Banks, it is now totally impossible.

The Solutions
But there are answers to this difficult problem, and certainly a number of alternatives.

1. The ‘Offshore’ Company By far the easiest way is to form an IBC (International Business Company), sometimes known in less politically correct times as an ‘Offshore Company’. IBC Companies, despite all the bad publicity, are perfectly legal as long as you declare any tax due to our friends at Revenue and Customs!

What forming an IBC Company does for you, in one single stroke, is allow you to open up a Bank account without a UK credit score. The best specialist Company who provide this service is Amanda J Molyneux & Company (tel: 01305 853310 website http://www.molybank.com/). Amanda J Molyneux & Co provides a great package consisting of a Tax Free IBC Company with a Guaranteed Bank account with absolutely no credit score. The account is with a major European Bank.

2. The Nominee Director. Another alternative to the problem is to use a nominee Director or a family member to enable your new business to open a UK Bank account. Of course this can only be done if the Company is a Limited Company. This option is not available to Sole Traders.

The Business Anarchist 1 day seminars cover all these issues in detail and will ensure you can start your new business on a sound footing – more details here

Seychelles IBC-Cyprus Trust Company - Total Confidentiality

Over the past few years we have provided Bearer Share Seychelles Offshore IBC Companies. The definition of a bearer share Company is there is no public record of the ownership of the Company within the jurisdiction. Whilst this offers some protection, clients are really vulnerable at their Bank. The Banks we deal with offer a number of protective measures to try to ensure client confidentiality, and protection from inquisitive outsiders. The most popular of which is a small electronic keypad (Digipass) that provides a burst code against the clients pin number. However, anyone investigating your affairs can apply to the local court for a court order known as a production order.

As the majority of the Bank accounts we supply are in Cyprus, I have used Cyprus as an example. Any investigating body can apply to the Cyprus High Court for a court ‘production order’. In most cases, the court would refuse, especially regarding tax investigations. However, with the general tightening up of International regulations it is possible that a Production Order is issued to your Bank which effectively forces the Bank to provide information on the beneficial owner of the Company and its Bank account.

Our new Seychelles IBC–Cyprus Trust Company ensures that this cannot happen. To explain the structure, I have provided a diagram below. The Seychelles Company issues one share to a Cyprus Company owned by a Cyprus law firm. The Advocate of the law firm will also be your nominee director. The Cyprus Company will then provide a trust document proving that you the client are the true beneficial owner of the Company. This document will have a court apostile stamp on it. The result of this type of structure is that if anyone investigating your affairs attempts to obtain a court order against your Company, they will leave court with an order against the Cyprus Company not the Seychelles Company. As you are not the beneficial owner of the Cyprus Company, no further information is available to the investigators. This makes this product ideal for ‘asset protection’ and or confidential International transactions.

More details and how to buy here

Guaranteed UK Limited Company Bank Accounts - No Bank Visit

Amanda J Molyneux & Company is pleased to announce that we can now guarantee a UK Limited Company Bank account irrespective of the client’s credit record. Accounts are available with one of the UK’S top 3 Banks. Account applications are handled by us on behalf of the Bank by post so no Bank visit is required. Two forms of I.D will be required which must include a UK Passport.

For more information and to apply for an account click here.

Offshore IBC Companies

Why buy an Offshore Company (IBC) without a Bank account? To be honest I have no idea but many clients do every day. We are constantly being asked to provide Bank accounts to clients who have already purchased an offshore Company without a Bank account, why? Well one of the reasons is our competitors often lead customers to believe they will arrange a Bank account for them, of course once the customer has paid the fee it is too late. Watch out for wording such as “we will provide you with a Bank introduction” This sentence can be found on many Company formation agents websites, frankly it means nothing. So what’s so different about buying a Company from us? Quite simply we are Professional Banking Introducers. We are licensed to the Banks we deal so our clients are assured full Banking Facilities without credit scoring or a Bank reference being required As far as we are concerned a Company formed without a Bank account is of little use.

Amanda J Molyneux & Company Limited will provide you with an Offshore IBC or Cyprus Company with a Guaranteed Bank Account a major EU Bank only exceptions. A nominee Director, Registered office and a Management office address in Cyprus. For further information see here. We are able to open Banks if you have an existing Company details.