Some advice please
Discussion
Hi all
Some advice is required. I run a online company. All shipping/storage is handled by a third party in UK. All i need is laptop and internet connection.
My question is basically, if i moved myself abroad (like dubai or hong kong), still used the third party to ship/store my items, what tax implications does this have?. All the money goes to my foreign bank account where i am based and have residency but we operate a business here. I am also talking to USA distributor to do the same as i do in uk.
Im spending less and less time in UK these days and alot of time at the factories abroad.
Any advice welcome or any reading material people can point me to.
Thanks
Some advice is required. I run a online company. All shipping/storage is handled by a third party in UK. All i need is laptop and internet connection.
My question is basically, if i moved myself abroad (like dubai or hong kong), still used the third party to ship/store my items, what tax implications does this have?. All the money goes to my foreign bank account where i am based and have residency but we operate a business here. I am also talking to USA distributor to do the same as i do in uk.
Im spending less and less time in UK these days and alot of time at the factories abroad.
Any advice welcome or any reading material people can point me to.
Thanks
Hi there
I think there are two main issues here - your personal tax position and the Company's tax position (as I assume that you are operating as a LTD Company and not as a sole trader).
From a personal tax point of view, if you break UK tax residence (you must be outside the UK for one complete UK tax year and limit any visits to the UK to less than 183 days per tax year and less than 91 days per year on average over a four year rolling period or the period you are abroad if less than four years) and do not carry out any substantive UK work duties then you will not be liable to UK tax on your employment income. If you do have substantive UK work duties then UK tax will be due on the income relating to these duties. NI may also not be payable depending on which country you go to.
Please go to the HMRC website and read IR20 for more on this and also see the release in the Budget re how to count days in the UK from 6 April 2008 - if you are here at midnight then it counts as 1 day.
You mention that you are in Dubai a fair amount now - there is no personal tax in Dubai so if you could break UK tax residence this could be beneficial for you. Please remember that you may be triggering tax liabilities in the other countries you visit. Each country has its own thresholds etc. as to when tax becomes due.
Please bear in mind that, although not paying UK tax may be good, you may end up payng tax in another country with a higher tax rate than the UK.
I would have to pass on the Company tax position. I think if your Company is registered and operating in the UK then UK corporation tax will be due regardless of where you are personally located. However, I would pass this to someone who deals with corp. tax.
I think there are two main issues here - your personal tax position and the Company's tax position (as I assume that you are operating as a LTD Company and not as a sole trader).
From a personal tax point of view, if you break UK tax residence (you must be outside the UK for one complete UK tax year and limit any visits to the UK to less than 183 days per tax year and less than 91 days per year on average over a four year rolling period or the period you are abroad if less than four years) and do not carry out any substantive UK work duties then you will not be liable to UK tax on your employment income. If you do have substantive UK work duties then UK tax will be due on the income relating to these duties. NI may also not be payable depending on which country you go to.
Please go to the HMRC website and read IR20 for more on this and also see the release in the Budget re how to count days in the UK from 6 April 2008 - if you are here at midnight then it counts as 1 day.
You mention that you are in Dubai a fair amount now - there is no personal tax in Dubai so if you could break UK tax residence this could be beneficial for you. Please remember that you may be triggering tax liabilities in the other countries you visit. Each country has its own thresholds etc. as to when tax becomes due.
Please bear in mind that, although not paying UK tax may be good, you may end up payng tax in another country with a higher tax rate than the UK.
I would have to pass on the Company tax position. I think if your Company is registered and operating in the UK then UK corporation tax will be due regardless of where you are personally located. However, I would pass this to someone who deals with corp. tax.
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