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Paying tax is your obligation and it is a requirement by the law, however paying less tax is your right and if you can find a legal method of doing so, you are free to pay less tax. Everyone must pay tax no matter what your annual income, because tax avoidance is treated as a criminal offence. For over 100 years, the taxpayers have been trying to find legal ways to pay less tax. There are many legal schemes available today that exist and they are growing in number by the day. Whether or not you decide to partake in one of these schemes is completely up to you and your view on your current business situation. Lets take a look at one scheme in more detail. The majority of businessmen already known how beneficial offshore companies can be, however they also know that many offshore companies are not presentable and as a result there can be a reduction in the amount o business partners who are willing to sign the agreement with such companies. So what is the best way to overcome this sort of situation?Well, you will be glad to know that there is a way out, and that is via the company formation UK process, this is not for ltd UK companies as limited liability partnerships (LLP) do not have any shareholders, they only have partners. These partners are required to pay tax independently as private members, however if members of LLP will be two offshore companies only tax which you must pay will be flat rate tax for offshore companies. Lets take a look at the figures; for offshore company formation it will cost you around £550 plus £180 for LLP formation UK. This means that the package in total will cost you around £1280. In order to maintain the three companies you are required to pay £300 for each offshore company per year, all taxes and LLP UK are inclusive and it will also cost you £540 for accountancy support. So in total your full payment will balance out at about £1040 per year, which includes all taxes. The costs are definitely considered a healthy investment and it will help you reduce your annual tax which is something that most people would desire.
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