Potential tax evasion
You're going to have to pay tax on your UK income anyway, wherever you are hiding.
Untrue. I don't know your exact circumstances but in general you don't pay income tax on your UK earnings if you are non resident. You do pay tax on non earned income though.
You'll need to pay your personal taxes somewhere,
Common phrase uttered by those not in the know - But they can be paid at a ZERO rate, like those residents of Monaco for example.
Paying taxes isn't a lifestyle choice, unfortunately.
If you are able to arrange your working affairs in a manner described by the original poster then it can be ( if that is what you are morally happy with)
Some of this advice is not correct.
Generally, there are automatic tests such as if you spend fewer than 16 days in the UK you are automatically non-resident and if you spend 183 days or more you are automatically resident.
I think that the 16 days only takes effect if you were able to previously claim non residence.
The 183 days is an absolute, but there are now a sliding scale of days depending on your sufficient ties and whether you were resident in the 3 previous tax years.
One colleague of mine is in year 1 and is allowed 46 days, another colleague is in year 7 and is allowed 93 days. The 183 days is really for people coming to work in the UK and deciding if they are UK tax resident.
You should also be aware that if the company is not managed and controlled in the UK (considering both directors live elsewhere and not residents in the UK), the company will not be liable to corporation tax in the UK but in the country you are both residents.
Some confusion there.
Some countries may consider that management and control is happening in the country you are working. Which may prevent you working through your UK Ltd. Generally if you are in the foreign country for less than 6 months per year there won't be a problem. A few countries may TRY to advise you otherwise.
But the UK company will still be liable for corporation tax on profits.
This means that you will have to appoint a local accountant in the country you are considered resident and pay both your company's and personal taxes there.
You should take local advice if you plan to be there for more than 183 days per calendar year, otherwise don't worry
The OP is correct , it can work out for him.
It IS as simple as he thinks. So long as you have the freedom to choose your working circumstances.
I don't know all of your circumstances but if you are not UK tax resident you shouldn't be paying uk income tax on UK income unless you are actually physically carrying out substantial work for more than 30 something days per tax year.
The OP is not planning on carrying out any actual work in the UK.
UK income is not always subject to tax when not resident.
Originally posted by Fred Bloggs
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Untrue. I don't know your exact circumstances but in general you don't pay income tax on your UK earnings if you are non resident. You do pay tax on non earned income though.
Originally posted by WTFH
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You'll need to pay your personal taxes somewhere,
Common phrase uttered by those not in the know - But they can be paid at a ZERO rate, like those residents of Monaco for example.
Paying taxes isn't a lifestyle choice, unfortunately.
If you are able to arrange your working affairs in a manner described by the original poster then it can be ( if that is what you are morally happy with)
Originally posted by Chart Accountancy
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Some of this advice is not correct.
Generally, there are automatic tests such as if you spend fewer than 16 days in the UK you are automatically non-resident and if you spend 183 days or more you are automatically resident.
I think that the 16 days only takes effect if you were able to previously claim non residence.
The 183 days is an absolute, but there are now a sliding scale of days depending on your sufficient ties and whether you were resident in the 3 previous tax years.
One colleague of mine is in year 1 and is allowed 46 days, another colleague is in year 7 and is allowed 93 days. The 183 days is really for people coming to work in the UK and deciding if they are UK tax resident.
You should also be aware that if the company is not managed and controlled in the UK (considering both directors live elsewhere and not residents in the UK), the company will not be liable to corporation tax in the UK but in the country you are both residents.
Some confusion there.
Some countries may consider that management and control is happening in the country you are working. Which may prevent you working through your UK Ltd. Generally if you are in the foreign country for less than 6 months per year there won't be a problem. A few countries may TRY to advise you otherwise.
But the UK company will still be liable for corporation tax on profits.
This means that you will have to appoint a local accountant in the country you are considered resident and pay both your company's and personal taxes there.
You should take local advice if you plan to be there for more than 183 days per calendar year, otherwise don't worry
Originally posted by jmo21
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The OP is correct , it can work out for him.
It IS as simple as he thinks. So long as you have the freedom to choose your working circumstances.
Originally posted by Fred Bloggs
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I don't know all of your circumstances but if you are not UK tax resident you shouldn't be paying uk income tax on UK income unless you are actually physically carrying out substantial work for more than 30 something days per tax year.
The OP is not planning on carrying out any actual work in the UK.
UK income is not always subject to tax when not resident.
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