Offshore Umbrella Companies
There are different types of Umbrella companies which you can read more about in our article What is an Umbrella company. But right now we are going to talk about Offshore Umbrella Companies.
Offshore Umbrella Companies in the Isle of Man for contractors. Legal ways to avoid IR35 and keep 85% or more of your money. Compare the top ones. Go to the bottom of the page to link to some top umbrellas offshore.
They operate from places like the Isle of Man and Jersey are becoming more and more popular with contractors and freelancers since the advent of IR35. HMRC in the UK don‘t like them but all the best offshore umbrella companies are perfectly legal. Contractors have been shown the way by the people at the top.
These include Chancellor George Osborne who has a £4.5 million offshore trust. Indeed David Cameron‘s family made their money by using offshore routes and his father Ian uses them. Another is Cameron‘s father-in-law Lord Astor who makes use of offshore schemes to save money. The Conservative party‘s top donor Lord Ashcroft is a top user of offshore schemes.
Contractors & Freelancers were late users of the offshore umbrella company route. Traditionally they used Limited Companies up until 1999. That was when IR35 came out. It changed everything. Previously few contractors used Umbrella Companies. Now over 200,000 contractors use them. The Government and HMRC like them because Umbrella Company contractors pay an average of £10,000 a year more in tax than a Limited Company contractor would.
So, Chancellor Osborne (he with the offshore trust in an offshore tax haven) said that the Government would strengthen IR35. Whilst cutting staff elsewhere he set up three new IR35 Compliance teams hiring an extra 36 Compliance Officers to force contractors out of Limited Companies and into Umbrellas.
Isle of Man
The object appears to be to herd contractors into Umbrella Companies. However, the Government may get hoist by their own petard. Contractors, more and more, are copying the top dogs and sending their money abroad to perfectly legal Offshore Companies. They are getting returns of 85% and more.
This is much better than returns from both onshore Umbrella Companies and Limited Companies. While the Government may want to grab more tax from contractors they will hardly close down schemes used by their main sponsors and indeed by themselves.
Compare Offshore Umbrella Companies
Here are some some of the top ones. Click on them to find out more:-
2. Tax Solution
International Umbrella Company Tax Solutions
These are for UK, or non-UK, contractors who work outside the UK.
Limited Company Tax Solutions
These are for contractors who want to retain their Limited Company but still get retain 85% or more of their money using tax planning.