Having spent the last 18 months experimenting with living on Sark I come to the conclusion it's probably one of the best tax free solutions for UK passport holders within Europe....
However.... There is no company register in Sark so I need to create a company somewhere else, the question is where?
I own a Uk events company (UK Ltd) which since the end of the pandemic has been very successful (pre Pandemic £1.3 million turnover), this year £3.2 million projecting £4 million next year. I take £10k per month in salary (tax free as I'm Sark resident) and so does my wife. Even after salary we are looking at a pre tax profit of £800K this year and £1 million next year), so a great problem to have!
Being so busy the business of creating an offshore company to extract profit has fallen behind, this is going to result in a large corp tax bill from HMRC this year, not much I can do about this with a year end at the end of April.
To be truly tax efficient I need a company in an offshore location which can extract profit by way of invoice to the Uk company. We need to invoice a 'design fee' from the offshore company to the UK company to extract some profit whilst leaving some corp tac for HMRC.
Sark has no CFC rules or any rules really so Sark is not the issue. Where would be best to establish the company? Ideally somewhere that does not require a resident director. Obviously the lower the tax the better but doesn't have to be tax free just low tax.
I have been told I could domicile the company in Sark even if it's registered off shore.
Alternatively if business continues I might decided to open a small office in the offshore location and place a designer there for added substance (thinking HMRC investigation), think the key is to show some substance somewhere, wether that be a small office on Sark (although hard to convince a designer to come here to work) or somewhere. If that happens to be a nice beach location to work from even better.... Eventually I would like to use the company to buy property rather than personally...
Any thoughts on my best bet?
However.... There is no company register in Sark so I need to create a company somewhere else, the question is where?
I own a Uk events company (UK Ltd) which since the end of the pandemic has been very successful (pre Pandemic £1.3 million turnover), this year £3.2 million projecting £4 million next year. I take £10k per month in salary (tax free as I'm Sark resident) and so does my wife. Even after salary we are looking at a pre tax profit of £800K this year and £1 million next year), so a great problem to have!
Being so busy the business of creating an offshore company to extract profit has fallen behind, this is going to result in a large corp tax bill from HMRC this year, not much I can do about this with a year end at the end of April.
To be truly tax efficient I need a company in an offshore location which can extract profit by way of invoice to the Uk company. We need to invoice a 'design fee' from the offshore company to the UK company to extract some profit whilst leaving some corp tac for HMRC.
Sark has no CFC rules or any rules really so Sark is not the issue. Where would be best to establish the company? Ideally somewhere that does not require a resident director. Obviously the lower the tax the better but doesn't have to be tax free just low tax.
I have been told I could domicile the company in Sark even if it's registered off shore.
Alternatively if business continues I might decided to open a small office in the offshore location and place a designer there for added substance (thinking HMRC investigation), think the key is to show some substance somewhere, wether that be a small office on Sark (although hard to convince a designer to come here to work) or somewhere. If that happens to be a nice beach location to work from even better.... Eventually I would like to use the company to buy property rather than personally...
Any thoughts on my best bet?
