Businesses move offshore and save tax – legally

Companies are looking for legitimate solutions that enable them to remain profitable by reducing their costs and increasing profitability. Reviewing the way a business is structured can deliver big benefits. Even businesses with moderate taxable profits can reap rewards.
The outcome of such a review may demonstrate that a business can legitimately and significantly reduce its tax burden by re-organising its structure. A corporate re-structure may include the addition of offshore or international business companies, that take advantage of the UK’s Double Taxation Treaties and low rates of tax in treaty partner countries.
In the following case study a UK company (‘UK Co’) that buys goods from China (‘China Co’) and sells to consumers in the UK.
• China Co sends goods worth £100 per unit, with invoice directly to UK Co.
• At the end of the financial year, UK Co makes a taxable profit of £1,500,000. The corporation tax at 28% = £420,000 so the profit after tax was £1,080,000.

Accounting Outsourcing Assures Your Business Is a Step Ahead

Have you become tired of doing so much accounting for your company each year? Do you get bored of doing the same thing again and again? For a small firm the accounting work is handled by the entrepreneur since there is no scope of employing a CPA to handle the accounts. Hence with the basic information on accounts the entrepreneur has to manage the balancing of accounts and searching for the errors. Along with that he has to manage the business and look at the progress of the business and what are the weaknesses so that they can be developed into the strengths. All this is bound to make the entrepreneurs go crazy. This makes accounting outsourcing a great option.

For big firms the expenses are way too much to maintain an accounts department.