Renewal Criteria for Self Employed

[Phepaulmy]

I am self employed, due for a renewal next January. I am being offered a consdierable salary package under an offshore umbrella company. How would this affect my HSMP renewal qualifying criteria?

[try-one]

Phepaulmy,
You would be required to show that you have a minimum income as required by HO for the renewal; if you want to keep the bulk of the money offshore, you can set up a UK company, transfer part of the offshore money to the UK and pay your salary from that money.
I'm not sure of the tax implications, my initial view is that you are undertaking paid work in UK soil and as such you should pay taxes on that revenue, by using the offshore umbrella you are circumventing the rules and exposing yourself to a review by the Inland Revenue. (in other words, may be ilegal)

[Wanderer]

Reading in the PGC forums about the IR and folks who used offshore (IoM) companies and basically worked and lived in UK and paid IoM tax rates, ie practically nothing.

These guys are in BIG trouble! The IR is seeking to recover all the monies they've evaded and may well jail them.