Contractor working in the Channel Islands

[ali_kat]

Not sure if this should be in here, Jobs & Employment or Business?

I currently use an Umbrella Company, based in the UK. A potential new contract means I would be working on one of the Channel Islands.

In order to get the most out of my earnings (ie pay least tax) am I better to…

Stay with my current Umbrella?
Move to a new one based off shore (– any suggestions?)
or
Get an accountant & start up my own company (finally)?

Does anyone please have any advice?

Additional information

I’m a discharged (personal) bankrupt
Due to their housing laws, I’d be commuting Mon-Fri, so I’ll exceed the 90 days in the UK rule
It is an initial 3 month contract (as usual) looking towards 1 year +
I will get a per diem as well as my daily rate from the Company

[Eric Mc]

How long are you going to be based in the Channel Islands?

[ali_kat]

musclecarmad said:

umbrella companies are very expensive why aren't you doing it yourself?

Because I never planned to contract for long, then was made bankrupt & couldn't. Now I can so it is an option.

[ali_kat]

Eric Mc said:

How long are you going to be based in the Channel Islands?

3-12 months Eric, possibly longer if they like me

[Eric Mc]

If you are going to be based there for a complete UK tax year, then you would not be a UK tax resident for that tax year - so income earned from your engagement in the CI would not be taxable in the UK. Therefore, operating as a limited company or going through an umbrella might not be worth the effort.

If your engagement doesn't straddle a complete tax year, then setting up a company might be worthwhile. However, if the company was UK based, then you would need to look carefully at IR35 and teh company would be subject to UK Corporation tax and UK company law.

What are the options regarding setting up a CI registered company?

That is something I know nothing about and you would need to speak to someone with expertise in that area.

[ali_kat]

Yeah, I think I need to talk to an expert, was hoping there'd be one here, or someone that knows one

I don't know how long I'll be out there, I'll find out tomorrow how long the initial contract is for (will be 3 or 6 months) and only after that will I know how long they will extend me for; we've spoken about it being 1 - 2 years, but as a contractor you never count that!

Thanks Eric, food for thought

[Timmy35]

ali_kat said:

Eric Mc said:

How long are you going to be based in the Channel Islands?

3-12 months Eric, possibly longer if they like me

How could they not Ali.

I've always used a firm called Cascade Management Solutions in London, UK based with an IOM trust. Works very well for me, and excellent retention rate.

If you want some details pop me a PM.

[darreni]

ali_kat said:

Not sure if this should be in here, Jobs & Employment or Business?

I currently use an Umbrella Company, based in the UK. A potential new contract means I would be working on one of the Channel Islands.

In order to get the most out of my earnings (ie pay least tax) am I better to…

Stay with my current Umbrella?
Move to a new one based off shore (– any suggestions?)
or
Get an accountant & start up my own company (finally)?

Does anyone please have any advice?

Additional information

I’m a discharged (personal) bankrupt
Due to their housing laws, I’d be commuting Mon-Fri, so I’ll exceed the 90 days in the UK rule
It is an initial 3 month contract (as usual) looking towards 1 year +
I will get a per diem as well as my daily rate from the Company

I can put you in touch with a Guernsey Accountant/Tax adviser if its Guernsey you will be working in.

PM Me if you need details.

[rich1231]

I can put you in touch with a terrible womaniser in guernsey if it helps?

[ali_kat]

Aww thanks Tim! Having done more research today I don't think an of shore umbrella is the way to go

Darren - thank you, will be in touch shortly

Yes please Rich!