[Fultonius]

Wise people of UKBouldering. I'm considering setting up as a Sole Trader. The business will be coffee roasting. I know not very much about the ins and outs of this kind of thing.

I have a complicated tax residency situation. I am based in Chamonix, but work in the UK as a contract engineer. The Coffee business would be on top of this, and most of the work would be either in France, or potentially Austria if we go with our current plan of moving this summer. Can I even register with HMRC if most of the business' activities are outwith the UK?

Or, would I have to set up in France/Austria?

[Sloper]

I'd say you're much better off as a E&W Ltd Co than a sole trader, there's no impediment to where the work is carried out: Jasper's your man for the details.

[galpinos]

As a contractor in the O&G sector, aren't you set up Ltd company already?

[Fultonius]

As a contractor in the O&G sector, aren't you set up Ltd company already?

Nope, as much as I pay more tax than I would, I feel a bit uneasy dodging tax when that is something I feel huge companies and the super rich shouldn't be doing. 

[a dense loner]

Dodging tax? Is that something you think Ltd companies do?

[Oldmanmatt]

As a contractor in the O&G sector, aren't you set up Ltd company already?

Nope, as much as I pay more tax than I would, I feel a bit uneasy dodging tax when that is something I feel huge companies and the super rich shouldn't be doing.

The system was created to give people an incentive to become "self employed" in a more structured way and make tracking income much easier for HMRC (limited companies are monitored much closer than sole traders).
As a contractor/consultant it is also there to protect individuals from specific liability, that would otherwise incur onerous (and therefore unviable) liability insurance costs.
To that end, you are permitted to draw a small directors salary (normally taxed as a salary) and to draw profit as a Dividend at a (slightly) lower tax level.
There are strict rules about how and when that Dividend can be paid.
It also means you may be liable for VAT.
It hardly constitutes tax avoidance.

[gme]

Sorry but most contractors who become ltd companies do so to reduce there personal tax bill. Your kidding your self if you think other wise.

Nothing illegal about it, and i dont have a problem with it, but thats why its done.

Only thing that winds me up is if the same people then moan about starbucks, bankers etc doing the same thing.

[galpinos]

Dodging tax? Is that something you think Ltd companies do?

They are minimising their tax burden within the law but outside of how it was intended to be used, a bit like Jimmy Carr. I believe it's called tax avoidance.

[Sloper]

Sorry but most contractors who become ltd companies do so to reduce there personal tax bill. Your kidding your self if you think other wise.

Nothing illegal about it, and i dont have a problem with it, but thats why its done.

Only thing that winds me up is if the same people then moan about starbucks, bankers etc doing the same thing.

There's a massive difference between the 'double irish' or 'dutch flake' and a small ltd co.

Also people are hypocrites, many people see nothing wrong about paying 'cash in hand' when they know that they're directly procuring tax evasion and vat fraud but get wound up about quite proper avoidance by careful planning.

There are also massive other benefits to being a ltd co, primarily the 'ltd' bit, I wouldn't fancy having my house and everything else on the line as a sole trader does.

[a dense loner]

I'm sorry but I became a Ltd company so I wouldn't have to work for a single company for the rest of my life. I could take or refuse most jobs that were available to me and not be ordered to do something at the same extent as an employee would. I was a sole trader before I went limited and one of them is a joke the other is a Ltd comp. I have to provide my own insurance, certification, training, etc and my own accountant. As opposed to the firms accountant. If I don't work I don't get paid. Now I don't mind any of this but saying being Ltd is a tax dodge is frankly insulting.

[Oldmanmatt]

I'm sorry but I became a Ltd company so I wouldn't have to work for a single company for the rest of my life. I could take or refuse most jobs that were available to me and not be ordered to do something at the same extent as an employee would. I was a sole trader before I went limited and one of them is a joke the other is a Ltd comp. I have to provide my own insurance, certification, training, etc and my own accountant. As opposed to the firms accountant. If I don't work I don't get paid. Now I don't mind any of this but saying being Ltd is a tax dodge is frankly insulting.

+1
With knobs on.

As a Consultant Engineer and Surveyor, I regularly signed off sea worthy, vessels worth 20-30M$.
Technically, as a contractor, usually working overseas and Non-Dom, I would never have had to pay any income tax (or VAT), but the protection afforded by LTD company status is worth the tax bill and accountants bill.

[Sloper]

I'm sorry but I became a Ltd company so I wouldn't have to work for a single company for the rest of my life. I could take or refuse most jobs that were available to me and not be ordered to do something at the same extent as an employee would. I was a sole trader before I went limited and one of them is a joke the other is a Ltd comp. I have to provide my own insurance, certification, training, etc and my own accountant. As opposed to the firms accountant. If I don't work I don't get paid. Now I don't mind any of this but saying being Ltd is a tax dodge is frankly insulting.

Oooooo you capitalist running dog and son of Thatcher. (Ps I wholly agree)

[gme]

Dense- You could have done all you say as a sole trader without any difference in how you work, many do. I have done both.

I wasn't accusing you of being a tax avoider, i didn't even know you were a Ltd company. I do however know a LOT of people, as i suspect you do, whos main reason for becoming limited is for the potential tax breaks. The offshore industry is rife with it, in fact I have seen comments about it today on Facebook linked to the wage cuts there are all facing.

[Fultonius]

I'm sorry but I became a Ltd company so I wouldn't have to work for a single company for the rest of my life. I could take or refuse most jobs that were available to me and not be ordered to do something at the same extent as an employee would. I was a sole trader before I went limited and one of them is a joke the other is a Ltd comp. I have to provide my own insurance, certification, training, etc and my own accountant. As opposed to the firms accountant. If I don't work I don't get paid. Now I don't mind any of this but saying being Ltd is a tax dodge is frankly insulting.

In your situation it sounds like you have a valid reason to have altd. company. In my situation I don't - I'd be working for the same clients, doing the same work. Just me, no equipment, no staff, no premisis, no trianing (paid by the client). So, for me (and the vast majority who work offshore) being Ltd. is purely a tax dodge - most don't even argue otherwise.

[Sloper]

I'm sorry but I became a Ltd company so I wouldn't have to work for a single company for the rest of my life. I could take or refuse most jobs that were available to me and not be ordered to do something at the same extent as an employee would. I was a sole trader before I went limited and one of them is a joke the other is a Ltd comp. I have to provide my own insurance, certification, training, etc and my own accountant. As opposed to the firms accountant. If I don't work I don't get paid. Now I don't mind any of this but saying being Ltd is a tax dodge is frankly insulting.

In your situation it sounds like you have a valid reason to have altd. company. In my situation I don't - I'd be working for the same clients, doing the same work. Just me, no equipment, no staff, no premisis, no trianing (paid by the client). So, for me (and the vast majority who work offshore) being Ltd. is purely a tax dodge - most don't even argue otherwise.

Let's say you go into coffee roasting and your 'roast' allegedly causes a bunch of high paid hipsters to suffeer from violent gastritis, (provided you don't have insurance) kiss good bye to all your worldy goods even if you win.

[Fultonius]

Where have I sad I wouldn't consider LTD. for the coffee stuff?  I was just replying to Galpinos about my offshore work. LTD is looking like the best option just now.

[Johnny Brown]

   I well remember the conversation with Dense about going limited....

'Hmmm, I'm not sure, it sounds like a lot of hassle'

'Yes, but you'll get paid more and pay less tax on it'

'Where do I sign?'

[a dense loner]

I told you not to tell

[kelvin]

Maximising tax breaks is fine. Tax dodging is me not paying my bill tomorrow