Dodging taxes on my new limited company

[idontlikethetaxman]

I'm setting up a new limited company and with the orders I have, expect to turn over around £310,000 in my first year, and make a profit of £290,000.

I am the sole director, sole shareholder and sole employee.

Paying income tax, corporation tax, capital gains tax, and all that nonsense doesn't inspire me with much confidence. It's far too high a rate.

I was thinking what legal way is there to avoid this?

A simple idea was that I setup an offshore company that invoices my company for £280,000 thus making my UK company turn a profit of only £10,000.

I then obviously with my connection have ready access to that £280,000 tucked away.

Is this legal? And Is this recommended or is there better strategies out there to employ?

[help.ma.boab]

In other forums i suspect you that you would be called a troll

[idontlikethetaxman]

Right thanks for your invaluable help, you really brought a lot to this thread.

[Generix]

I'm setting up a new limited company and with the orders I have, expect to turn over around £310,000 in my first year, and make a profit of £290,000.

I am the sole director, sole shareholder and sole employee.

Paying income tax, corporation tax, capital gains tax, and all that nonsense doesn't inspire me with much confidence. It's far too high a rate.

I was thinking what legal way is there to avoid this?

A simple idea was that I setup an offshore company that invoices my company for £280,000 thus making my UK company turn a profit of only £10,000.

I then obviously with my connection have ready access to that £280,000 tucked away.

Is this legal? And Is this recommended or is there better strategies out there to employ?

Without knowing anything about corporate tax - I would suggest that even ignoring the at best imaginery commercial transaction between offshoreCo and UKCO (which could be legitimised I concede), you would be caught by some sort of related party transaction issue or transfer pricing issue.

Am sure something is doable - depends on your type of business etc.

[Incredulum]

Far simpler, actually, the payment would just not be wholly and exclusively for the purposes of his trade, so would not be deductible.

[idontlikethetaxman]

My sincere apologies, I seem to have posted in two forums - in an effort to minimise the stupid mistake I made, please continue offering your support in the forum below:

http://www.taxationweb.co.uk/forum/dodging-taxes-on-my-new-limited-company-t31626.html