Hello, this is my first post on this site.
Over the last 5 years, I have been contracting, through my UK-based Ltd company, with London based clients in the IT sector. At the same time, I have been tax-resident in the UK.
I do 100% of the work remotely from my laptop and, hence, I have occasionally been performing the work from my home country - Latvia.
I am planning to relocate to Latvia in a few months, and would come to London for fewer than 5-6 days a year, so in effect I would become a tax resident of Latvia and cease to be a tax-resident in the UK.
One issue that is clear to me is that, since I would continue to work through my UK Ltd Company, the company would continue to pay corporation tax in the UK (at 20%) on all company profits and continue to submit the annual accounts to the UK authorities.
However, what is unclear to me (after spending a lot of time reading a large volume of sources), is whether I would be able to declare and pay all my dividend earnings from my existing UK Ltd company in my new tax-resident country, or if I would need to continue to declare them in the UK and continue to pay tax on them here. I would prefer them to be taxed in Latvia, as the dividend tax rate is much lower there.
I have read that one of the factors to determine this is where the work is performed. In my case, I would be working through my laptop from Latvia, hardly ever coming to the UK. However, the work performed would all be with UK clients, through a UK limited company. So, could i legally declare all my dividends in Latvia and pay tax on them there?
Thanks in advance for any advice on this.