We are in the process of setting this up for one of our clients.
It was inspired by Mr Cauldwell of Phones4U. Who a year or two back set up a company in Jersey or Guernsey. The company was to provide benefits to Phones4U employees. Phones4U paid £20m to this "Benefit Company" - reducing their corporation tax (CT) bill by £6m (big companies then paid CT at 30% [now 28%]).
Mr Caudwell personally applied to the Beneift Company for an interest free loan of £20m and surprise surprise was granted it.
Result - Mr C got £20m tax free out of his business AND reduced his CT bill by £6m.
There is quite a bit of cost involved in doing this - and you need to have the readies to pay over. so for the benefit to outweigh the costs for our clients, you need to have available profits of £100k.
The other criteria you need is to be happy for the taxman to crawl all over it - it is a registered scheme with HMRC, but that doesn't mean they like it!
No comments:
Post a Comment