Moving the business offshore would mean moving the computers &
the employees
of MiddleearthGames - you cant just register a company
in Bermuda....VAT applies to all services rendered in the UK - it doesnt
matter that
Clint's output is then sent overseas
You set up a company in, say, the BVI. That is the company that
US and other non-EU players deal with. That company subcontracts
the running of the turns to MEPBM in Wales. MEPBM Wales charges
the BVI company a very low rate for the service. Legally, the
two companies are distinct. MEPBM Wales brings its turnover
down below the VAT threshold and everyone is happy, except
the Excise folks.
And if you think it's impossible to do, I suggest you look at
the register of large US and European companies that have
offshore subsidiaries for the very reason of diminishing their
tax bills.
Off course, this wouldn't be an issue if the bureaucrats
in Whitehall and Brussels weren't so intent on taxing us all out
of business...
Gavin