Company TAX in Uk/ Domicile - Isle of Man

Urszula
Urszula New MemberRegistered Posts: 14
Dear All,

I am wondering how it works. One of my friends want to open a company which will be based in the UK. Her partner is from Isle of Man and as far as the company is concerned, if the company is registered for his name, the company will have no obilgation to pay tax.

Is this true? Am I right? It is a bit confusing, becasue the domicile of residence will be Isle of Man, but company will be based in the UK.

I would highly appreciate your feedback.

Many thanks

Comments

  • Bluewednesday
    Bluewednesday Font Of All Knowledge Registered Posts: 1,624
    Where will the company be managed? I take it that it is registered in the Isle of Man - not in the UK?
  • Monsoon
    Monsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I looked into offshore companies briefly last year.

    My understanding is that the company is based where the company is managed and the definition of this is 'where the board meetings are held.' Therefore if the board meetings are held in the IoM, that is where it pays company tax.

    If the business is trading in the UK it will have to obey the UK rules for VAT and PAYE, but would not be liable to UK CT if the management is offshore.

    Don't quote me on any of this, but that was my understanding of it in a nutshell.
  • Urszula
    Urszula New Member Registered Posts: 14
    Thank you for your feedback.

    The company will be registered and managed in the UK and the board meetings will be held in the UK as well. Therefore as per your feedback, the company will have to pay VAT, PAYE and CT.

    Many thanks for your help.
  • Bluewednesday
    Bluewednesday Font Of All Knowledge Registered Posts: 1,624
    That's right, a company registered here pays tax here, a company managed here pays tax here so you definitely will be paying UK Corporation tax
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