UK Limited - Client not in UK - contractor/director moving out of UK

[freeplatypus]

Hi folks,

Has anyone here been in situation such as:
- Limited company formed in UK
- Director/Contractor - EU citizen - moving out to live in other EU country
- Client not in UK

Can this work? Does anyone work like this?

I am not particularly worried about taxes as in I intend to acquire legal advice of local accountant and all the bells and whistles and only this I really care is to maintain UK Limited company and hopefully pay only UK corporate tax (personal tax will fall into local authorities I guess).

Any experiences? Tips?

Did anyone managed to maintain UK bank account with sole director living outside of UK?

Found few accounting/formation company that support no-UK residence to form limited companies and operate them from their own countries but not sure how reliable this information is.

[BlasterBates]

You can use your Ltd but you need to register it in the country you're working in and pay taxes there, also corporate tax. You wouldn't then pay UK tax as there would be no profit in the UK, it would only be registered there. It's not necessarily the most tax efficient way to work in another EU country.

[freeplatypus]

You can use your Ltd but you need to register it in the country you're working in and pay taxes there, also corporate tax. You wouldn't then pay UK tax as there would be no profit in the UK, it would only be registered there. It's not necessarily the most tax efficient way to work in another EU country.

And what would be the most efficient way?

I am considering opening equivalent of limited company at the destination but be simpler if i didn't have to.

[DotasScandal]

And what would be the most efficient way?
I am considering opening equivalent of limited company at the destination but be simpler if i didn't have to.

It all depends where you're going to be based, dude. There is not one answer.

But re your original question, yes, it is possible, and actually it is pretty common.
There is no obligation to reside in the UK to be a director of a UK Ltd.
Your Ltd's tax affairs and your personal tax affairs are two separate things.

[ASB]

And what would be the most efficient way?

I am considering opening equivalent of limited company at the destination but be simpler if i didn't have to.

Your UK limited will become resident where management is genuinely exercised. And you will have a hard job arguing that is anything other than where you are working. In effect it will be treated in the same manner as any other company of the same structure.

[DotasScandal]

Your UK limited will become resident where management is genuinely exercised. And you will have a hard job arguing that is anything other than where you are working. In effect it will be treated in the same manner as any other company of the same structure.

Hmmmm.... is it really that clear-cut?

INTM120210 - Company residence: guidance originally published in the International Tax Handbook

"Yet it has long been recognised that the residence of a company is determined according to where its central management and control is to be found. That is still so even though since 1988 a company incorporated in the United Kingdom is, with some exceptions, regarded as resident in the United Kingdom for the purposes of the Taxes Acts. That rule overrides but does not eliminate the test of central management and control. "

I'm not sure how to interpret the part highlighted above, to be honest.

[freeplatypus]

Thanks all for responses. This seems to be either possible or impossible to arrange.

My accountant claims that this is not achievable. It might be that he is playing it safe.

Did anyone here actually pulled it off? As in:
Client not in UK.
Director not in UK.
Business adress as virtual address in UK or non-UK (I was told HMRC doesnt like virtual office addresses).

Maybe someone knows and can recommend professional that specializes in these kind of problems. I am happy to pay for quality advice.

[freeplatypus]

But re your original question, yes, it is possible, and actually it is pretty common.
There is no obligation to reside in the UK to be a director of a UK Ltd.
Your Ltd's tax affairs and your personal tax affairs are two separate things.

My accountant says that is not possible. I am genuinely confused now.

[SueEllen]

It is possible but your UK accountant won't be able to deal with it for you.

You need an accountant in the country you are living in and one where the client is.

Then you need to find one who knows about both UK and other country's/countries' company tax.

[DotasScandal]

It is possible but your UK accountant won't be able to deal with it for you.
You need an accountant in the country you are living in and one where the client is.
Then you need to find one who knows about both UK and other country's/countries' company tax.

Correct....and good luck finding an accountant who "knows about both UK and other country's/countries' company tax":

1/ They are not many of them
2/ They will charge you an arm and a leg for this knowledge
3/ It is likely that they won't be interested in dealing with you, unless you are billing 1M per year. Just not worth their time and effort.

Cross-border tax is a minefield. You might want to stay away from the topic unless you really have to.