Can my 'Ltd' supply the UK client while I am resident abroad

[hooyas]

My Client is in the UK. My Invoicing is fully in the UK. My earnings are fully in the UK. My taxation is fully in the UK. But I am resident abroad. I work abroad from my office and deliver my work to the UK client via email. I claim expenses for my office and internet bills abroad. Is this a legal situation and are there any tax or other implications?

[jmo21]

How are your invoicing and earnings in the UK if you are not?

Because "you want them to be" doesn't count.

[Clare@InTouch]

There's no reason why your UK Limited company cannot invoice a UK client for the services of an employee (you) who lives abroad.

Go careful though - if the management and control of the UK limited company takes place in another country, then you may find that the other country will deem it to be tax resident there and tax it accordingly. There may also be complications with the UK company paying wages & dividends to a non-resident (it's fine to do so, but you'll need UK and foreign tax advice on how to remain tax efficient).

If you're living abroad, presumably permanently, why a UK limited company rather than one registered in your home country?

[Greg@CapitalCity]

There's no reason why your UK Limited company cannot invoice a UK client for the services of an employee (you) who lives abroad.

Go careful though - if the management and control of the UK limited company takes place in another country, then you may find that the other country will deem it to be tax resident there and tax it accordingly. There may also be complications with the UK company paying wages & dividends to a non-resident (it's fine to do so, but you'll need UK and foreign tax advice on how to remain tax efficient).

If you're living abroad, presumably permanently, why a UK limited company rather than one registered in your home country?

+1. Its no problem, but it might not be the most tax efficient way of operating (or the most practical). The company tax residency issue, and personal tax issues related to wages and dividends from a foreign company are usually the two reasons why contractors don't work using an arrangement like this long-term.

[Wanderer]

My Client is in the UK. My Invoicing is fully in the UK. My earnings are fully in the UK. My taxation is fully in the UK. But I am resident abroad. I work abroad from my office and deliver my work to the UK client via email. I claim expenses for my office and internet bills abroad. Is this a legal situation and are there any tax or other implications?

So you are not resident in the UK and you don't work in the UK but you seek to be personally taxed as if you lived and worked in the UK because you have a UK LTD company?

Is this because you would pay less personal tax in the UK than you would in your country of residence?
Do you have the right to live and work in the UK?
Were you ever resident in the UK for tax purposes?

I'm confused..

[norrahe]

You have to be very careful of having a physical presence in another country from both a business and personal perspective. If you have a physical presence in both the UK and where you are resident then you are liable for tax in both countries.

If you are permanently resident elsewhere then why do you still have a UK ltd?

[NotAllThere]

What country do you live in? Usually taxation arises according to where the work is carried out. If you're working via email, then the work is being carried out where you live, and tax is probably due in your country of residence. Or are you only out of the UK temporarily. How do you work for you client - I assume through a UK ltd co? Who are the directors - I seem to recall there is a residency requirement for directors?

Without knowing quite a lot more information, no one can meaningfully answer your question.

[jezosaurus]

Is this a legal situation

Almost certainly not. If the country you are resident in is in Belgium, then the UK company would have to pay Belgian company taxes, and if you personally derive any income from the company / work, then you would be liable to Belgian income tax.

I'd expect stricter rules for other countries - Belgium is particularly flexible with "creative" setups.

[ASB]

"My Client is in the UK. My Invoicing is fully in the UK. My earnings are fully in the UK. My taxation is fully in the UK. But I am resident abroad. I work abroad from my office and deliver my work to the UK client via email. I claim expenses for my office and internet bills abroad. Is this a legal situation and are there any tax or other implications?"

Of course it is legal, and of course there are tax and other implications.

There are 2 elements involved. Your personal affairs and the company affairs.

You could be TAX resident in the UK. You could be tax resident wherever you are actually resident. From your description I would think you may well not be tax resident in the UK, but this would depend upon when you left, how much time you spend here etc. There is an international department that deals with these things. I suggest you track down their contact details from HMRC website and explain your position to them.

If you are tax resident here then generally UK taxes will be expected upon your worldwide earnings.

You are almost certainly tax resident in the country you are living in. It is perfectly possible to be tax resident in multiple jurisdictions simultaneously. They will expect tax in accordance with their rules (most likely on your worldwide income).

If you are resident in both then what relief are available will depend upon the terms of the double taxation agreement between the UK and you host country.

The same applies to the corporate situations. Given your description it does seem to me entirely possible that your company is no longer resident for tax purposes (there is a little thing called something like the corporation tax exit charge you need to watch out for). Again the taxation could be one, the other, both, or both relieved by a DTA.

Given all the management appears to take place abroad, all the productive work is done abroad it does seem likely that your UK ltd is no longer tax resident here.

There is also the issue of social security. There are very similar issues, though generally this will be due in the country of residence there are some exceptions when residence changes. Also in some cases there is an elective ability to make a choice as to which.

Further there are issues related to Employers NI. As a non resident employee (assuming you genuinely are non resident in the eyes of HMRC) then ER's NI may well not be due on any salary you are paid.

You also need to check your VAT position carefully. This could also be a bit of a minefield.

You would be well advised to check your position carefully, mistakes could end up being very costly.