Everything is legal about what this company is offering in an advert that just popped up on the Guardian page I was looking at:
And everything is also so wrong too.
It should not be possible to form a company with no paperwork, but it is.
Limited liability is open to abuse. It should not be available so cheaply.
And there should be checks in place, and a lot of fuss to make sure that they are complied with.
It really is time the UK stopped behaving like the very worst form of regulatory abuse tax haven, and yet that is exactly what it is when it comes to company formation.
When will we get our act together?
When will we stop the abuses that such light-touch regulation permits?
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Don’t you use an LLP? One where you seem to do all the work and take all the profit? Doesn’t seem like a partnership then really does it. Which is fraud in itself by the way.
Makes me wonder why you set it up that way in the first place? Avoiding tax of some form or other maybe?
All a bit hypocritical.
I do not do all the work
I do not take all the profit
Oddly, we discussed this yesterday and my wife is happy for the ratio to remain. It has been fixed over many changes of circumstance and there is not a hint of planning in it
Equally, we are discussing a new role for her, so it might at some time
In the meantime she is involved in every decision the business makes – that is partnership
And why was it formed? Because when I started it my accountancy practice was much figure and its professional indemnity insurers wanted no confusion so they wanted a separate entity for tax research work. That was why.
And why an LLP? Because it meant I paid no more or less tax than if I had done it in my own name, or with my wife
And it’s always delivered a great del more data than required by law
Not a hint of hypocrisy then, unless you’re a troll
It’s obviously ridiculous to suggest an llp is a tax avoidance vehicle. However you could have set up a normal partnership to get the same result from a tax and organisational perspective.
Many people choose llp’s to get the limited liability protection they offer. Again, no criticism of you but @Gerry other corporate forms are available
A separate legal entity was required
An English partnership does not achieve that goal
And please note, I am not wasting more time discussing this
The obvious question to ask is why using these legal entities for tax haven purposes has such demand. The answer to this is the forms of taxation used. I note in the 18th century Parliament was largely controlled by the wealthy yet the tax take increased dramatically during that century and clearly such refluxing of the newly introduced banknote currency was a strong factor driving the Industrial Revolution. The tax base was largely customs, excise and land tax with a move away from the latter towards excise. Christine Desan has these at 90% of total taxes collected. (See pages 386 to 389 of her book “Making Money: Coin, Currency and the Coming of Capitalism.”) One of the virtues of the excise tax she argues is that if there was a default on paying the tax goods to the value of the tax could be seized in kind.
Couple that with the ability to open a company bank account with little fuss – and hey presto, covid loans sucked out of the system – amongst others.
And who is the chancellor making this last possible? It’s a shame rather more people don’t realise what he’s actuallly doing to this country…