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

[WaldemarPross]

Hi guys,

I lived in UK for 5 years and worked via my one-man-Ltd for a while. Now after a few years in permanent employment, I have set up a new Ltd to work as contractor again.

However, I and my GF plan to "roam around" for a few years, staying about 2-5 months in each place., while working remotely (she has her own business). We left in May 2017, so for 2017/2018 year we won't be counted as UK residents I believe.

As far as I know, since I won't be resident in any country (and luckily I'm not US citizen), I don't have to pay personal tax. In other words, my UK Ltd has to pay corporate tax (and VAT) to HMRC, but the personal income I'll be taking out in form of dividends and/or salary, will not be taxed by HMRC?

Any input will be appreciated.

P.S.: for those of you who want to start debating that its tax cheating, unethical etc. please don't. We pay higher prices for everything because everything short term is expensive and it's perfectly legal.

[Fred Bloggs]

You're going to have to pay tax on your UK income anyway, wherever you are hiding. Not to do so would not be tax avoidance. It would be tax evasion and that is not a good thing to be charged with at all.

Edited to say - I am not UK tax resident. But I do have to pay UK income tax on the income stream I still have arising in the UK even though I am not there.

[Lance]

I think HMRC would have a very different view.
If you're not paying personal tax anywhere you're not able to use any dual tax treaty to avoid UK income tax.

You're going to take money from a UK LTD company and take it offshore. How are you going to take it? What bank account will allow you to do this?

And if you happen to be in France for an hour or two they may decide you're resident there. That'll cost more.

Have you considered why the really wealthy are always resident/domiciled somewhere? If being resident nowhere avoids all personal tax then more people would do it.

I'm not saying it won't work. I am wondering how many countries could end up chasing you, all of them legitimately.

[NotAllThere]

...
P.S.: for those of you who want to start debating that its tax cheating, unethical etc. please don't. We pay higher prices for everything because everything short term is expensive and it's perfectly legal.

Seems a bit confused. Are you saying that because everything is short term, it's legal to dodge tax? Or that what you want to do is legal? If the latter, what have higher prices got to do with anything, and if you already "know" it's legal, why are you asking here?

You will always be resident for tax purposes somewhere. It's possible to be tax resident in more than one country, and it's possible to be liable for taxes even if you're not resident.

[Lance]

Seems a bit confused. Are you saying that because everything is short term, it's legal to dodge tax? Or that what you want to do is legal? If the latter, what have higher prices got to do with anything, and if you already "know" it's legal, why are you asking here?

You will always be resident for tax purposes somewhere. It's possible to be tax resident in more than one country, and it's possible to be liable for taxes even if you're not resident.

I think OP means that due to the nature of their lifestyle being short term, everything is expensive.

[WTFH]

You'll need to pay your personal taxes somewhere, unless you're living on a boat in international waters.

You may say that you are paying more for things, etc, that's completely irrelevant to paying tax. The amount you pay extra for renting places short term is because of your lifestyle choice.

Paying taxes isn't a lifestyle choice, unfortunately.

[Lance]

Paying taxes isn't a lifestyle choice, unfortunately.

Oh it is.
It just might not end up being the lifestyle you desired. Do you like the taste of porridge?

[Sue B]

https://www.gov.uk/government/upload...nal_078500.pdf

Be very careful about this. Just being out of the UK does not automatically create a period of non residency. You need to go through the statutory residence tests and I have attached the link above.

Incidentally, as you left the UK after the 2017/18 tax year started, then this tax year would not count as a complete tax year (although it may be classed as a split year).

Bear in mind any income remitted to the UK or arising from UK sources. Also the working overseas test does require you to work the equivalent of 35 hours per week.

Lots of things to consider, lots to go wrong........get proper advice, that you pay for, and is covered by professional indemnity insurance.

HTH

[Chart Accountancy]

Hi guys,

I lived in UK for 5 years and worked via my one-man-Ltd for a while. Now after a few years in permanent employment, I have set up a new Ltd to work as contractor again.

However, I and my GF plan to "roam around" for a few years, staying about 2-5 months in each place., while working remotely (she has her own business). We left in May 2017, so for 2017/2018 year we won't be counted as UK residents I believe.

As far as I know, since I won't be resident in any country (and luckily I'm not US citizen), I don't have to pay personal tax. In other words, my UK Ltd has to pay corporate tax (and VAT) to HMRC, but the personal income I'll be taking out in form of dividends and/or salary, will not be taxed by HMRC?

Any input will be appreciated.

P.S.: for those of you who want to start debating that its tax cheating, unethical etc. please don't. We pay higher prices for everything because everything short term is expensive and it's perfectly legal.

You should consult your accountant or a tax adviser to confirm your residence status. 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. However, there are other factors to be considered such as the sufficient ties tests mainly family connections and available accommodation in the UK.

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. 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 can still keep the UK company and open a branch in your 'other' country of residence.

I hope this helps.

[WaldemarPross]

Thank you all for the info! I will probably consult an accountant.

The general message I read among the replies is "you have to pay tax somewhere".
Maybe I didn't formulate my question precisely: I'm not looking to not pay taxes at all. I (or my Ltd) will of course pay corporate tax, because I'm doing business via UK Ltd.

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.


...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?