If you’re running a limited company in the UK, you may be tempted to move your business elsewhere in an effort to avoid paying corporation tax.
This may seem like a viable option, but it’s important to consider the implications of such a move. Not only could you face hefty fines from HMRC, but there are also a number of other factors to take into account.
Firstly, HMRC are very vigilant when it comes to detecting companies that are attempting to avoid paying their taxes. If HMRC suspects that you are moving your business to avoid paying corporation tax, they may launch an investigation. This could be costly and time-consuming, and you could face hefty fines and/or legal action for attempting to evade taxes.
It’s also important to consider the practical implications of moving your company away from the UK. You would need to establish a presence in the country you are moving to, which could be costly. You would also need to consider the legal and taxation implications of the move.
Finally, it’s important to consider the financial implications of moving your business away from the UK. Even if you are able to reduce your corporation tax bill, there are other taxes and fees that may increase.
For example, you may have to pay higher VAT or customs duty if you are importing goods or services from the UK. Overall, it is not sensible to move your limited company away from the UK to avoid corporation tax. Not only are you likely to fall foul of HMRC, but there are other practical, legal and financial implications to consider.
If you are considering moving abroad and unsure of the implications, book onto a Discovery Call below.