Jersey and an off shore company

[aceparts_com]

Can anyone explain the pro's and con's of setting up an offshore company?
Is this just for the likes of Sainsburys or do small fish get some advantage?
I see on the news the other day something about Tesco's sending post to Jersey and then bouncing it back to the UK to save VAT or something.

[Eric Mc]

Complicated, expensive, time consuming and probably not worth the hassle for small operators.

In 2008, Jersey are bringing in their own variation on the VAT theme called GST (Goods and Services Tax).

You have been warned.

[aceparts_com]

I don't need warning; I have difficulty running a co in the UK!

Just a morbid curiosity.

Thanks

[simpo two]

aceparts_com said:

I don't need warning; I have difficulty running a co in the UK!

Tax consultancy would seem to be a growth area...

[davidd]

From what I can gather the Jersey thing is that it gets round vat on dvds and cds.

This is why play.com have done so well.

I seem to recall there there is some sort of £18 limit on any item although I cannot remember why..

D

[darreni]

Guernsey is even better, we have no sales tax.
HMV this week announced they are moving their entire mail order operation here.

From memory, it breaks down like this:

Net based tade is ok as long as the transaction /service takes place offshore.

However if the company is registered offshore, but the actual business(or service) is done onshore, then you will still be liable to UK tax & vat.

At last count, there were some 46,000 companies registered here in Guernsey!