Family member as additional director Family member as additional director
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  1. #1

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    Default Family member as additional director

    What implications are there to consider in making a family member an additional director?

    This is not being done for tax avoidance (they would not be paid or a shareholder unless to the minimum extent necessary to legitimise the arrangement).

    The aim is to ensure that management and control of the company remains in the UK, even though my own tax residency may move to another country (most DTAs cause a small company's tax residence to shift as well in this scenario, which unleashes endless problems).

    So for example, they would sign any contracts of work on the company's behalf. Other activities like the payment of dividends would be postponed until I physically visit the UK and can do board meetings for that purpose.

  2. #2

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    Quote Originally Posted by zerosum View Post
    What implications are there to consider in making a family member an additional director?

    This is not being done for tax avoidance (they would not be paid or a shareholder unless to the minimum extent necessary to legitimise the arrangement).

    The aim is to ensure that management and control of the company remains in the UK, even though my own tax residency may move to another country (most DTAs cause a small company's tax residence to shift as well in this scenario, which unleashes endless problems).

    So for example, they would sign any contracts of work on the company's behalf. Other activities like the payment of dividends would be postponed until I physically visit the UK and can do board meetings for that purpose.
    It wouldn't solve anything as the director and main shareholder would be abroad.
    merely at clientco for the entertainment

  3. #3

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    Also, I don't want the discussion to be derailed once again by your incorrect understanding.

    Again, the topic is: what are subtle implications of having an additional director, not, as you want: does having an additional director achieve management & control in the UK. Thanks.

  4. #4

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    You're trying to fudge this. HMRC will see through the contrived arrangement and correctly identify that the controlling director is abroad. This is why offshore companies are all governed by local staff with a clear separation of duties between control and shareholder.

    Stop this. You're no good at it.
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  5. #5

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    Quote Originally Posted by wattaj View Post
    You're trying to fudge this. HMRC will see through the contrived arrangement and correctly identify that the controlling director is abroad. This is why offshore companies are all governed by local staff with a clear separation of duties between control and shareholder.
    Nice try, but again, this is paid advice from an international tax specialist with experience of winning cases.

    He advised that I should have an additional director in the UK, and ensure that all management and control occurs in the UK, including flying in for board meetings, and that recent cases have been won on this.

    He did not advise on all the ins and outs and implications of hiring such directors.

    Quote Originally Posted by wattaj View Post
    Stop this. You're no good at it.
    Back at you.

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    Quote Originally Posted by zerosum View Post
    Nice try, but again, this is paid advice from an international tax specialist with experience of winning cases.

    He advised that I should have an additional director in the UK, and ensure that all management and control occurs in the UK, including flying in for board meetings, and that recent cases have been won on this.

    He did not advise on all the ins and outs and implications of hiring such directors.

    Back at you.
    So if you are paying for advice why do you post your tulip here and then argue against every comment people make

    It's contrived and HMRC would ignore it were they to investigate but given that you have decided on your plan nothing is going to make any difference.
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    So if you are paying for advice why do you post your tulip here and then argue against every comment people make

    It's contrived and HMRC would ignore it were they to investigate but given that you have decided on your plan nothing is going to make any difference.
    Why do you feel compelled to post in order to attack the premise of the question? F* off and post somewhere else.

    I provided my reason for posting in both places.

    Again. What are implications of hiring a family member as additional director?

    I know you'd prefer to get into a discussion of the premise of the question, but that is simply not of interest and as far as I understand it, you are both wrong. I'm sorry if you don't like it.

    It is quite obvious to me, for example, that you are copying and pasting an attitude that would hold if this were for tax avoidance, but you have absolutely zero idea if it holds for management and control. Because again, the implication of that is *not* really about avoiding or not avoiding tax.

    How can it be contrived for management and control to occur or not to occur in the UK? It's a simple question of facts. A VPN -- that would be contrived.
    Last edited by zerosum; 17th November 2020 at 10:16.

  8. #8

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    Quote Originally Posted by zerosum View Post
    ...He advised that I should have an additional director in the UK, and ensure that it appears that all management and control occurs in the UK, including flying in for board meetings, and that recent cases have been won on this...
    FTFY. Now FRO.
    Last edited by wattaj; 17th November 2020 at 10:32. Reason: Speillng.
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  9. #9

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    Quote Originally Posted by zerosum View Post
    What implications are there to consider in making a family member an additional director?

    ...they would not be paid or a shareholder ...
    Quote Originally Posted by zerosum View Post
    ...

    Again. What are implications of hiring a family member as additional director?
    Hiring or not hiring?
    Paid or not paid?
    Will they be paid expenses to attend meetings or receive any benefits from the position?

    Do you know the difference between management and control?

    My understanding is management comes from the directors, while control comes from the shareholders. If there is only one shareholder and they are offshore, then control is offshore. Doesn't matter where you fly to for a management meeting.
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    I think the real question is, how certain are you that you can honestly answer the Companies House question "Who are the persons of significant control" in the company...?
    Blog? What blog...?

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