Member Since: 3rd Jul 2013
10th Aug 2015
How long the process takes depends on the precise circumstances for you/your client
As noted in earlier post this is not a simple matter of a telephone conversation
In making a disclosure you need to ensure that it is a "full disclosure" and consider whether you are going to use any of the available disclosure facilities or whether a CIF route is more appropriate
Under either option a considerable amount of work is required
10th Jul 2015
Each and all are entitled to their view on any subject, being part of a majority view does not automatically make anyone right, or indeed wrong.
There is not enough detail in the original post to be abvsoloutely certain about the exact nature of the structure being promoted but I suspect that inherent within the arrangement will be the existance of a a capital redemption contract (CRC).
I am not at all convinced that any arranegement (CRCs or otherwise) is ever 100% risk free and whereas insurance can help mitigate risk that is not the same as saying there is no risk.
As always with any tax planning arrangement appetite for risk of the client is always a key factor in the decision to do anything (tax planning or otherwise) and therefore an awareness of the risk or risks is crucial in any such evaluation.
iiThere have been many comemnts
8th Jul 2015
There are circumstances where gross payment would be correct, or where PAYE may be due but not NIC , but the information given in the Original Post does not give enough detail to arrive at an informed judgement.
As an example of the matters that need to be considered if youre NED is also a partner in a Iegal or accounting practice and the fees are ultimately passed to the practice this would be payable gross. The situation is different again if there is a Personal Service Company (PSC) and the residnce status of the NED may mean that No NIC is due even though PAYE is.
On general principles an NED is an office holder and as duties are in UK (unless the board meetings attended are not in the UK) the provisions of Section 5 ITEPA 2003 and Section 3 SSCBA 1992 would require deduction of PAYE and NIC
These issues always turn on the exact details of the arrangements
22nd Jun 2015
"Legit", yes it is
The only thing you need to remember is that an accrual method requires agreement (to the method adopted) by HMRC.
Cashflow benefit on a permanent basis until cessation
The VAT legislation does not require that you have actually paid your VAT before you claim it as Input Tax (it will claw it back under bad debt rules if you don't)
17th Jun 2015
"old cash basis" may still apply
I agree with Banzai, a few quirks, primarily
1 rules on use of the old cash basis can still apply as there was a 7 year period of continuance after the new rules were introduced (2013).
2 Need to consider what basis will apply after expiry of "old rules" or whether/when to move before end of maximum period noted at 1 above.
3 New cash basis (if adopted) limits use of losses and has various limits that need to be met to participate
4 watch calculation of class 4 NIC on the transition between regimes
Otherwise "standard" stuff.
19th Mar 2015
IHT on gift to consider as well
As the father has reduced the value of his estate (by making a cash gift to his son) there is potential (depending on quantum and any previous IHT events) for
3rd Mar 2015
There is more to consider here
You do not say whether the UK company employee is a South African National.
If not a SA National there are likely to be work permit/ visa issues to consider
The presence of the UK employee overseas may well create a PE in South Africa for the UK entity and all the work that goes with that
In addition, as noted in the post from Euan the employee has almost certainly made the UK employer a SA represntative employer and this will give rise to a WHT requirement (together with a requirement to contribute to various SA employment related levies) in SA
2nd Mar 2015
There is no loss to the echequor
There is no loss to the echequor
In your example the wages/salary paid is £1,000 and the tax due is £200
As £200 has been paid under PAYE the correct amount of tax has been deducted
What has happende is that the "employer" has overpaid and as David Heaton points out (in what is a precise explanatioj of the relevant legislation and related law) thje "employer's" right of recovery is under the dopctrine of restitution (against the "employee" who has their extra £200).
You obviously would not bother with restitution for £200 but if the numbers were bigger (say) £200,000 you almost certainly would
27th Feb 2015
Devil in the detail
There are many legitimate reasons why a UK business or individual might want to establish an offshore company and/or trust but there is simply not enough information to judge the motive and business circumstances that are driving this from the post. It is not stated whether this is an individual a partnership or a company or ven if there is any current structure in place.
You have rightly recognised that you need more expert help (although it is not wholly clear from your post whether your asctual concern is the mechanics of establishing the vehicles concerned, the complience issues arising from their operation or the underlying rationale and justification for adoption of such vehicles).
If you are looking at international business transactions then non UK structures may be an appropriate response to the business environment in which your client operates (or is intending to operate) but this is always a mix of fact and judgement based on your clients specific business circumstances and not something on which there is a useful generic opinion
26th Nov 2014
This might be useful reading
It might be sensible to take a look at the provisions of section 121C of the Social Security Administration Act 1992 which permits HMRC to make a director personally liable for NIC contributions the company has not paid over (including the employers NIC)See also the related tax case of re Leslie Livingstone 2010