Liability & Legality

#1 (permalink)

I am about to register a Ltd. in the UK and I am strongly considering hosting my sites there as well so I don't have to worry about these stupid German laws. (Believe me, they are ridiculous.)

Can someone give me some pointers or send me to online resources about the following things:

• What are the laws regarding copyright? Is there a fair use clause like in the US?
• What is the current legal situation regarding how forum owners are responsible for their user's posts? In Germany there's some ridiculous lawsuit going on right now concerning this which is why I'm thinking about hosting in the UK in the first place.
• How much would I have to pay in taxes and how are the filed (online or do I just send them a form)? (With this I only mean taxes on the company's profits, not my income.)
• Do I have to be hosted in the UK to take advantage of their taxes or is it sufficient to have the Ltd. registered there?

Basically what I'm trying to do at the moment is to weigh the benefits against the risks of being sued and having to be physically present in the UK.

#2 (permalink)

Not sure myself about the details, but this might help:

http://www.businesslink.gov.uk/bdotg...cId=1073865436

As far as I know with the copyright laws, there is no explicit "fair use" clause, but there are other exemptions.

#3 (permalink)

That is an excellent resource! Thank you very much.
I also found something about the fair dealings exemption in the UK which answers my copyright question.

#4 (permalink)

It's my understanding that because you're an EU member you'll pay taxes in your home country, regardless of where you are hosted.

If you're looking to pay less tax then you may want to look into having a guernsey discretionary trust own your websites.

#5 (permalink)

Firstly, I am not a lawyer or accountant. As I understand it, fair dealing is roughly the same as fair use in the US.

Corporation tax for Ltd companies under £500k turnover is 19%. If you're making any substantial income, you'll want accountant to handle tax matters for you. My accountant paid for her costs in a matter of weeks. If you don't live in England, I'd look outside London for an accountant, as their rates can be far lower.

No, I host in the US, but my Ltd company is based in London so I file taxes in the UK.

#6 (permalink)

Thanks to the two of you for answering. My main goal is not the tax savings but rather the fact that UK law is a little more lenient than German law (liabilities for website owners and the likes).

What if the Ltd. is registered in the UK and it's also hosted there? Why would I have to pay taxes in Germany instead of in the UK? I assume German law would also apply instead of UK law?

#7 (permalink)

From my limited understanding of tax law, I understand that countries typically judge tax liability based on your country of residence, not where you do business or operate from. So while I host in the US and earn money from US affiliate programmes, I pay tax in the UK.

BTW - I meant £500k *profit* not turnover for the 19% Corporation Tax rate.