uk a tax haven? no

21 Nov

london 5.07pm 12.2C drizzling monday 2016 quite warm really.

read another article saying facebook has decided to stay put in london, in fact increasing its workforce to 500 from the 1000 already here when they move to new offices which it is building in fitzrovia. that area around the post office tower.

so this is  3 of the big guns of the internet companies increasing their presence in london. i wonder what is up.

(and in that article it mentioned amazon is moving its headquarters to london too from slough, berkshire. ) what is going on i wonder? even though they have a physical presence in uk, they have not paid much taxes to uk, still being able to channel profits to their company in luxemburg. just goes to show how lenient the british taxman is to these big companies. instead they go after the little man. (wasn’t it helmsley, she of the helmsley hotels in new york who said only the little people pay taxes?) hmrc is now thinking of charging tax on perks like gym membership etc. 

i think after ireland was forced by the EC to increase the tax to one of them,(microsoft, in case u are wondering) they must all be rethinking their strategy. uk at least has been very accommodating to them, and not forcing them to pay the full amount of tax allowing them to bypass their profits into off shore companies. and with PM May saying she wants to give them the lowest corporate taxes in the G20. (it seems trump has said he will bring down  corporation tax rate to 15%). well, if uk is going to follow they must be thinking it will be wise to stayput in uk. not to mention they might be able to avoid us tax if they pay uk tax as there is a reciprocation agreement between the two countries where there is no double taxation. (corporation tax rate is currently 20% in uk, to fall to 17%  in 2020. so really it is not a long drop to 15% ). it looks like all the countries are trying to attract businesses to stay rather than go abroad. all the big internet companies are holding vast amounts of money off shore… they are holding off bringing it back to the US, because of that high 35% corporation tax rate in usa now. i think trump wants it brought down to 15% to allow them to bring it back and be taxed. 

it would seem people might be better to let themselves be made into a company. that way they can pay company tax rates of ,what is it now,20%? ireland charges 15% so if PM May is wishing it, it might be lower (about equal)  in uk in future.

it would make the uk the best tax haven in the world. or will it?

added.11.35am tuesday 22.11.16 12.1C cloudy.  i wonder what rate the bahamas charge.i googled it and to my surprise it is 0%. so it seems the uk is a long way from being a tax haven. haha. how does it work out for the bahamas to charge 0%. how do they make money out of it i wonder?

hmm, if they bring corporation tax to 15% i wonder if they might consider bringing personal tax rate to that as well, and remove all exemptions. have maybe £11000 tax free for everyone, and then tax the balance at a flat rate 15% on gross income. it will at a stroke put a lot of accountants out of business. haha.

 

 

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