RE: FN-FORUM: Umbrella Companies

date posted 1st February 2006 14:31

> But if an offshore company benefits from favourable non-UK tax laws,
perhaps it can=20
> offer higher take-home rates without compromising its level of =
service?
>
> Steve

Yes, as far as I'm aware, if income is actually earned in another EU
country, you pay the taxes of that country, and can move it around =
within
the EU without restriction. (Nb. If earned outside the EU, you cannot =
just
bring it back to UK).

But in this case you're earning it in the UK, so whoever you work for, =
I'm
almost certain you're subject to UK tax.

One issue could be class A (Employer) National Insurance contributions.
Companies pay a further 10% NICs to HMRC for all employees gross, on top =
of
what you see on your pay slip. =20

This collected by the tax beast via the UK PAYROLL system, which any =
company
who pays UK based staff needs to have. As far as I see it, any offshore
company will still need a UK payroll to pay UK staff, so can't see how =
they
can avoid paying class A NICs. =20