Tax Avoidance

[simonwood]

I own a UK registered Ltd Company, of which is vat registered. I contract thru this company thus paying myself dividends.

My goal, is to work 6 months in the uk (or another countrys..), then spend 6 months living, not working in Spain. -

How can I maximise tax avoidance in the situation?
Would appreciate any help to make my dream realistic!

Kind Regards

Simon.

[Ardesco]

I own a UK registered Ltd Company, of which is vat registered. I contract thru this company thus paying myself dividends.

My goal, is to work 6 months in the uk (or another countrys..), then spend 6 months living, not working in Spain. -

How can I maximise tax avoidance in the situation?
Would appreciate any help to make my dream realistic!

Kind Regards

Simon.

Just carry on as normal, take a wage to cover your tax free allowance and then divi out the rest.

[simonwood]

thanks

I could..I think I need to speak to an expert. (I may no keep uk residency status)

Thanks for trying.

[simonwood]

hey

thanks for trying. Think I should speak to an expert as I may not have UK status.

thanks again.

Best Wishes.

[tim123]

I could..I think I need to speak to an expert. (I may no keep uk residency status)

Thanks for trying.

If you are working six months of every year in the UK, then you will still be resident. You need to work less than an average of 3 months not to be.

tim

[[email protected]]

The rules are changing. If you are in the UK for 183 days a year including days of travel then you will be UK resident for tax. So if you enter the UK on a Monday, work 3 days Tuesday to Thursday, then leave on Friday, this will be counted as 5 days.

[tim123]

This is true, but I suspect the poster is going to do: 6 months on, 6 months off each year (or similar) not 3 days on, 4 days off each week.

And 3 days on, 4 off will, in any case, make you resident under the current rules. You need to do 2 days on, 5 days off, and not work every week to avoid residency this way.

Whilst I don't like how the new rules will affect me when counting my holidays days in the UK, I think that the "fly in on Monday morning, back on Thursday night" people were really TTP.

tim

[ASB]

From the very limited information you have provided nobody has a hope of offering you any advice other than generalities. However a couple of points which may be appropriate to consider in your discussions with an expert based on your specific circumstances

It is possible that you may be non resident for tax purposes in the UK with your proposed arrangements. If you are resident in the UK you will need to pay UK taxes on ALL your income unless you are non domiciled.

It is possible, but difficult, to acquire a domicile of choice. If you can show you have cut all your ties to the UK you might just be able to achieve this. From a UK perspective this might be to your advantage because if you are resident and non domiciled you are only taxed on UK remitted income. The rules in this area are also changing and the possibility exists that this could actually become a disadvantage.

If you are not UK resident then a UK company might not be such a good idea. Since it is likely (but not definitely) going to be UK resident and will be taxed on its income.

You cannot establish your UK position in isolation. It will interact in some ways with your spanish position. They will probably want a slice of the action.

It is perfectly possible for you to be tax resident in more than one country. In this case you will be subject to taxation to both (generally there will be a DTA in force which will ensure you just pay the higher, however when company income is involved there can be some bizarre interactions. These tend to cost you more in taxes than would otherwise be the case). [Example is portuguese withholding taxes of 15%, even after getting the certificates from the portuguese authorities these can be difficult to claim against UK taxes because portugal takes it as a personal deduction and the company is paying CT.]

It used to possible to be tax resident nowhere. This is something the authorities find displeasing nowadays. If you can pull it off then incorporating in a tax haven can be very beneficial.

Even though your CO is UK registered it is possible that because of the time you spend in spain the spanish authorities may consider it spanish resident and seek to tax it.

[simonwood]

Thanks

Hi

Thanks all for trying - but your correct my situation will be complicated - to complicated for a forum plus tax is important rather not mess up! I'm going to seek pro advice.

Also to add to the complication I'll be sailing round the world and working in different countries. - Can't wait. Just need to find my first contract for 6 months to get things going.

Again - thankyou all. Esp. to 'ASB' for your time consuming reply.

Kind Regards


Simon.