Should I setup an offshore account as a freelancer?

[SarahWood]

Hey!

I'm freelance web designer based in the UK. I'm making around £7500 a month‌ and was wondering if I should setup a company and bank in another country to‍ avoid taxes? Also, if I was to open a design agency with employees, would I⁠ be able to do the same?

Thanks!

 

[Cetme308win]

The question here is are you planning to move out of the UK ore just‌ planning to stay under the radar?

 

[SarahWood]

I have plans to‍ move to the USA in the future but I have no interest in moving anywhere⁠ else.

 

[Cetme308win]

USA + offshore is a‍ bad idea
Also legally,reducing taxes with an offshore setup is not easy...
You will need⁠ a physical office as well as hiring local staff in order to create some economical⁤ substance.
The other way is cheating the taxman and avoiding taxes.

 

[orangekangaroo]

Sarah if you can, move.‍ With social security if you earn 90k you will get taxed 30k in the UK.⁠ In a country like Romania you can reduce the tax with socials to 3 %.⁤ Imagine 27k extra in your pocket. Oh and cost of living is half. Plus you⁣ will get the motivation to outsource and even make more money. I lived 10 years⁢ in UK, I liked it but the world is bigger.

 

[Sols]

As long as you live in the UK, any income you derive is subject to‌ UK income tax (unless you're a foreign national qualifying as resident non-domicile). Having an offshore‍ account to avoid taxes doesn't work anymore. It doesn't change the fact that you still⁠ need to pay income tax, or risk far severe repercussions if/when the HMRC finds out.⁤

 

[Rprox]

Interesting question, I⁤ am a Non-Uk resident, but once you are in the HMRC's database would this make⁣ not it harder for SarahWood to establish anywhere else in the world with the intent⁢ of enjoying those offshore benefits? @Sols

 

[JohnLocke]

Looks like @Sols already answered your question @Rprox for your own situation it may be‌ different because you say you are a Non-UK resident but you may be forced to‍ check your situation with an tax advisor.

 

[Rprox]

Appreciate it thanks.⁠