Are you domiciled in a country other than the UK and have offshore income which is at present outside the UK tax regime?

As of 6th April 2008 you will need to review your affairs carefully each year - if your offshore income exceeds £2,000 per tax year you must make a claim on your tax return if you wish to stay within the remittance scheme.  If no claim is made, you will be expected to declare your worldwide income in the UK and pay any taxes accordingly each year.

If you choose to stay within the remittance scheme you will lose your UK personal allowances and UK Capital Gains Tax exemptions.  In addition to this, the biggest blow will be for those who have been resident in the UK for 7 out of the last 10 tax years, as to keep within the remittance scheme you will also have to pay a non tax deductible £30,000 to HM Revenue and Customs every year! 

Careful planning will be required to decide which option best suits your personal circumstances each year and to prevent HM Revenue and Customs imposing large unexpected tax bills upon you.  If you would like any further information or if you have queries on how this will affect you, please contact enquiries@a4gsolutions.co.uk.

If you have, or are thinking of opening a second business, and require or desire limited liability, you do not necessarily need to opt for a limited company!

In some cases, a second limited company can prove extremely detrimental to the overall tax liability that you will receive, especially where the first limited company is well-established and making good profits.

Another option that you should strongly consider is that of a Limited Liability Partnership (LLP for short) that will help you avoid the tax problems associated with having more than one limited company, whilst giving you limited liability and further very useful ways of making you more tax-efficient in the future.

To investigate further, please log on to www.a4gsolutions.co.uk/taxsaver to book your place at one of our free forums on the topic or email wes@a4gsolutions.co.uk for further information.

“Good communication is characterised by providing employees with information which they want and getting information to them quickly and through the channels they prefer”

LOUIS I. GELFAND