Offshore Umbrella Company History
This article explains the history of offshore umbrella companies and what they do for contractors.
Any offshore umbrella company history would not be complete without saying why they were set up and when.
Offshore Umbrella Companies really started when the Conservatives got into power in 1979. One of the first laws that Mrs Thatcher put in place was to allow money to leave the UK without being taxed.
Many Tory grandees took advantage of it and Ian Cameron, David’s father, made his money from setting up these offshore schemes.
Avoiding UK Tax
It was the start of the great offshore industry. Many major international companies now avoid tax by using these offshore places dotted all over the globe.
Most of the hedge funds are there. One half of all the world’s trade now passes through these offshore locations. One third of all the world’s wealth is lodged in these offshore places.
The rich and international companies have been taking advantage of these offshore schemes to avoid tax.
Belatedly, UK Contractors have now joined them through the use of Offshore Umbrella Companies.
Instead of taking their money as income, UK contractors send the money offshore. It never comes back. Instead, the offshore company give UK contractors a loan in lieu of their income. Loans are not taxable.
The contractor never pays the loan money back so the company keeps the money they have offshore in lieu of it.
There are other offshore umbrella company schemes as well. Some of them enable you to keep using your current Limited Company.
Tha’s how offshore umbrella companies started and how they work
How Offshore Umbrella Companies Work
To find out more click on Offshore Umbrella Companies and How they Work
To find some offshore umbrella companies and maybe apply to join one, click on Offshore Umbrella Company List / Directory