Offshore Solutions to IR35

IR35 was introduced in April 2000 by the UK Government's Tax Authority (Revenue) which many saw as a means of the Revenue gaining additional taxation. The Revenue claimed that many "contractors" were really employees of their end customer and were not self employed at all. Previously to this many self employed persons were at liberty to use local limited companies to provide their services. The self employed person then drew a salary from his company and paid himself the profits earned as dividends.

Dividends are taxed again if the contractor is a shareholder of the company. It was however possible that individuals running their own contractor company could avoid being taxed as employees altogether. he HM RC have suffered several defeats in court over IR 35, the most notable cases being engineering contractor and PCG member Mark Fitzpatrick and IT contractor Elaine Richardson. Elaine battled with HMRC for over five years over its claim for more than £50,000. A tax tribunal ruled that her contractor limited company, ECR Consulting, “is a genuine business and therefore not the target of the IR35 legislation”.

The actual rules for IR35 have been legally difficult to define and in fact the Revenue has quite a poor record in Court at enforcing it. Not everyone can comply with IR 35 regulations but we at Keylink Consultancy LLC can draw upon expertise and explain the options available. 

To find out if we can help you please fill in the quick contact form in the right hand column and we promise to reply within 24 hours or sooner.

We can save non UK tax resident contractor clients, on average around £50k per annum, that they may otherwise have paid in tax in their home country.

Saveontax have existing clients (consultants and contractors) that are successfully using Offshore Companies to receive remuneration from overseas contracts.  If a contractor's new employer/agent is prepared to pay for the services provided through an Offshore Company, in most cases there would be no Corporation Tax, Capital Gains Tax, Wealth or Inheritance Taxes payable.

For more information about how this may work for you please see the links below:

Contractors | Offshore Company | Gibraltar Company | Malta Company | Contact Us

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