Payments for "consulting" and "software dev" -- suspicious for banks? How to mitigate it?

[cangarooo]

Thanks for the︅ clarification.
What i wanted to say with my previous comment ("Anyway, residency has no impact︆ on the type of setup I've in place") is that based on what I've in︇ place, my residence has no impact. It works even if you are based in somewhere︈ Africa, US or elsewhere.
That's it ;-)

 

[JustAnotherNomad]

Yes, sure, if you have some nominee director. But then the company has to pay‌ tax in that other country.
So the question is, which country allows a company not‍ to pay tax? ;-)

 

[cangarooo]

Sorry to say but you really⁠ don't know what you are talking about (no offence).

Maybe reading the following link will⁤ help you.
Clearly explained at point 1 directly by the HMRC
https://www.gov.uk/government/publi...-of-companies-that-are-not-resident-in-the-uk

 

[Marzio]

A country that has a DTA with UK & the corporate‍ income tax in that country is 0%

 

[cangarooo]

You got it!!!
😉

 

[AdvancedGene8320]

Interesting!

1) At︀ this point I don't use any bank, but Transwerfise and Stripe, biz accounts. Later on︁ I plan to use Bankera too.

A customer can, or rather will, pay for consulting︂ via either. Obviously, with Stripe there'll higher fees, but for some customers it's easier to︃ pay via it because he'll only need a bank card as opposed to sending a︄ swift transfer via Transferwise.

Question:

*who* in my cause would or could ask me for︅ a proof (invoice and such things) of consulting or software dev? Stripe? Transferwise? UK revenue︆ service? Or any of them could?

2) You say "withdrawing money via Debit Card issued by me" -- how have you issued your own bank card?

 

[AdvancedGene8320]

3) Also, for now I expect that an average payment will be relatively small -‌ one or a couple of hundred dollars. Sometimes they'll be thousand(s), but only sometimes. And‍ in sum -- a thousand or several thousands per month, that is.

Is it be⁠ likey that there'll be little to no any scrutiny along the way with such amounts?⁤

 

[cangarooo]

Stripe are easy for the customers paying via credit card.
And yes, unfortunately, fees are on you except if you want to charge it to your︂ customers.
TW i'm not an expert as I don't use it so .... cannot say︃ anything here.
I only receive money via Bank Transfer (IBAN Based Account).

Questions on the︄ transactions may come from both Stripe and the bank where Stripe is sending money to.︅
Stripe is performing an initial KYC plus having a continous monitoring on the transactions.
Bank should do the sam but this mostly depends on the jurisdiction where the bank is︆ located.

Yeah, sorry, bad description. It's obviously not "my own bank".
With my existing bank︇ account, I can issue several Debit Cards to be used for my team members.
And that's what I do.
Assuming you are my customer and you want me to manage︈ for you a transaction of 10.000€ with your final customer:
- I issue the invoice︉ to your customer
- I collect the payment from your customer via Bank Transfer
- when money are on my bank account, I create a new Team Member Debit Card︊ for you for the total amount minus my fee: 9.000 €
- the Debit Card︋ is sent to you via Registered Mail directly by the Bank

Checking of the transactions︌ is made by the banks or Stripe indipendently from any amount. A suspicious transaction can︍ be based on the payment initiation country, based on the currency, based on many different︎ factors.

Hope this helps

 

[AdvancedGene8320]

Thx man

---

You pay no taxes with your UK Ltd and you're own the‌ true owner of it, right? But even with this set up, how could someone legally‍ avoid paying taxes in the UK with LTD?

If it was UK *LLP*, then it'd⁠ be understable how to not pay taxes, and legally so.

But in case of UK⁤ *LTD* - one has ALWAYS to pay taxes AT LEAST to the UK. No?

And when there's no DTA, then one would pay taxes to the UK *and* in a⁣ country where he's a resident too. Or vise versa -- first in a country where⁢ you're a resident, then, in required, in the UK? 🙂 Redardless, one would still pay taxes︀ at least in one country. Or not?

 

[AdvancedGene8320]

a word missed:

 

[cangarooo]

Sorry to say but you'd read the full discussion.
It has been explained HOW IT‌ WORKS!!!!

Again, ZERO TAXES paid by me and my UK LTD.

 

[AdvancedGene8320]

I like to ask questions on forums without having read a whole topic 😉

Regarding PM‌ - they're unavailable for me. Does anybody know, is it because my account is too‍ young?

 

[cangarooo]

Well, this time lesson learned 😉
We don't like to repeat several times the same things‌ .... we consider it "wasting of time" 😉

 

[uplana]

won't last long. You will face troubles sooner or later with such an setup.⁠ Alternative you circulate lot's of UK LTD's use and trash them.

 

[EuroKiss]

won't last long. You will face troubles sooner or later with such an setup. Alternative‌ you circulate lot's of UK LTD's use and trash them.
I always thought that way,‍ but how to explain that:

HMRC issue briefing: taxing the profits of companies that are⁠ not resident in the UK

1. Introduction​

The general rule is that a company which⁤ is not resident in the UK has to pay UK Corporation Tax only if:

• it has a permanent establishment in the UK
  
• the economic activity that generates its profits is⁣ carried out in the UK
  

 

[EuroKiss]

Also:
United Kingdom - Corporate︀ - Corporate residence

 

[uplana]

There are ways around to do what OP say he does, but it is way‌ more complicated then described here!

 

[cangarooo]

Well, since many years they say this will be changing, it will be more difficult⁠ and other bla bla bla.
It's 10 years i'm doing it and it's still working.⁤

 

[cangarooo]

Oh yes, there are many‍ ways to do it.
I took the easy (and cheap) path.
Someone may be willing⁠ to pay way more to achieve this.

 

[EuroKiss]

But they clearly stated that‍ if you have no PE (like in the OP case) you have no corporation tax;⁠ I mean, it seems pretty clear to me. Invoicing to UK customers with an Irish⁤ company is an additional safety measure (even if gov doc stated that having UK customers⁣ don’t mean you have PE).