Working via UK Ltd, without residence ANYWHERE (remote work + travel)

[WTFH]

Why do I need to pay corporate tax AND personal income tax?

YOU don't pay corporation tax. A company pays corporation tax. Some people who are contracting fail to see a separation between a company and an individual.

I'd also be a bit concerned about your comment where you said you would speak to "an accountant". Do you not currently have an accountant who is doing the books for your company?

...OK, let's put it that way than: for someone who can live anywhere in Europe and (I assume) register a company anywhere in EU/UK, with clients in UK and EU (well, mostly I invoice agencies based in UK), what is are the best places to set up a company and get a residency?

Totally different question to your original one about being a nomad.
You use the term "residency", I'd say it's about where you want to live.
If the place you choose to call home is only for tax reasons, then Monaco, Jersey, etc might be worth looking at.
And if it is just for tax reasons, then your accountant will advise you best on it.

For me "living != working". I live where I want to and work where I take my contracts.

[Lance]

But why do I have to pay tax on my personal income (taken out as dividends or salary)? I don't live in UK and I'm not using it's "services" (roads, police, NHS etc.). Why do I need to pay corporate tax AND personal income tax? This was my thinking. But of course law is still law and my reasoning is irrelevant at the end of the day.

Your customer is benefiting from those services.
Your customer's staff have been educated by UK tax-funded services.
The staff have healthcare provided by the same.
Your money is safe in a bank due to being in a civilised country not a kleptocracy.
You have at some point personally taken advantage of those services I assume.
So yes you do benefit from them.

You're reasoning is flawed as well as irrelevant.

EDIT: Not to forget you would also be depriving a willing tax-payer of the work.

Dual-tax laws are there so that people don't have to pay twice. You are getting benefits from tax-funded services if you're in the EU, and so you should pay an EU country those taxes. You can sort of choose where (up to a point) but will find that the UK is one of the better ones


EDIT AGAIN: before you bang on about how you didn't want to bring ethics into this. You started it by asking why you should pay tax.

[SueEllen]

Your customer is benefiting from those services.
Your customer's staff have been educated by UK tax-funded services.
The staff have healthcare provided by the same.
Your money is safe in a bank due to being in a civilised country not a kleptocracy.
You have at some point personally taken advantage of those services I assume.
So yes you do benefit from them.

You're reasoning is flawed as well as irrelevant.

EDIT: Not to forget you would also be depriving a willing tax-payer of the work.

Dual-tax laws are there so that people don't have to pay twice. You are getting benefits from tax-funded services if you're in the EU, and so you should pay an EU country those taxes. You can sort of choose where (up to a point) but will find that the UK is one of the better ones


EDIT AGAIN: before you bang on about how you didn't want to bring ethics into this. You started it by asking why you should pay tax.

Communist!

[Lance]

Communist!

Ha. Just snorted my beer out my nose.

[MrMarkyMark]

Ha. Just snorted my beer out my nose.

Might help the OP put out his fireworks

[m0n1k3r]

But why do I have to pay tax on my personal income (taken out as dividends or salary)? I don't live in UK and I'm not using it's "services" (roads, police, NHS etc.). Why do I need to pay corporate tax AND personal income tax? This was my thinking. But of course law is still law and my reasoning is irrelevant at the end of the day.

If you don't spend enough time anywhere to become resident there through time spent, then other factors comes into play, such as economic interests, family ties, organisations you're a member of, directorships, money flows, the social security system you belong to, property etc etc etc.

My guess, without knowing your specific circumstances, is that you would still be deemed to be tax resident in the UK unless you can show that you have established yourself elsewhere for the longer term.

[WaldemarPross]

Your customer is benefiting from those services.
Your customer's staff have been educated by UK tax-funded services.
The staff have healthcare provided by the same.
Your money is safe in a bank due to being in a civilised country not a kleptocracy.
You have at some point personally taken advantage of those services I assume.
So yes you do benefit from them.

Yup, this is what the corporate tax should cover. And my customer is paying taxes too I hope. Just replace the above "you" with "company" and it all sounds fair. I don't live in UK. I don't benefit from any of these services. My company does and it pays corporate tax.

You have at some point personally taken advantage of those services I assume

Correct. When I was living in UK and also paying personal income tax.

Anyway, maybe I should open a separate thread to discuss the ethics side of the taxes avoidance.

[Scruff]

As long as you don't draw an income from YourCo. then you won't have any income tax to pay from that source? Simple as.

[NotAllThere]

Unless you can demonstrate you are resident elsewhere, HMRC will continue to treat you as resident in the UK. If they decide you residency remains in the UK, any tax you pay elsewhere (if there's a double taxation agreement) will be offset against your tax liability.

Many countries have a policy of taxation on all income globally. So if you're not resident in the UK, but resident elsewhere, any income derived from the UK is liable to taxation in the counrty you do reside in.

Since UK taxation operates under self assessment, unless you're investigated you'll get away with simply evading/avoiding tax. If you're in one country after another, they may not cotton on to you being there, and so evade/avoid tax there. That doesn't mean there's no liability; if you do get caught it will be expensive and possibly result in criminal charges.

TL;DR there's no escape. The best is that you can show you're resident in a lower tax regime country.

[BlasterBates]

The way to do this is register in every country you work in and leave before you reach the tax free limit. Non residents are liable for tax for income earned in that country regardless of the length of stay. If you don't have proof such as a tax return you will have a tough time with hmrc if they were to enquire. Corporate tax would also need to be paid in those countries. Of course you may not end up paying any tax at all!