Using an EU "billing company" to invoice my client and then pay to my offshore LTD

[Old Greg]

Just get them to pay you with a cheque and nip down the local cash converters. Sorted.

Oh.. The CUK text editor has gone all Millennial on me. It does't know what cheque is and is trying to auto-correct it to quench. That's lit AF!

Krugerrands.

[northernladuk]

Krugerrands.

They are fine thanks for asking. Bit of cream and they dried up nicely.

[SimonMac]

The dodgy tax implications are the least of the problems, you will find zero agencies who will work this way so it's a non starter, if you go down the ltd route they will insist on a UK company for which you are the majority share holder

[bul]

The dodgy tax implications are the least of the problems, you will find zero agencies who will work this way so it's a non starter, if you go down the ltd route they will insist on a UK company for which you are the majority share holder

My experience is that most don´t care if the contract is outside UK.
And BTW my understanding also was that you are not tax resident if you don´t live/work in the country
for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.

[BR14]

My experience is that most don´t care if the contract is outside UK.
And BTW my understanding also was that you are not tax resident if you don´t live/work in the country
for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.

Aye, - good luck with that, DO let us know how you get on.

[NotAllThere]

And BTW my understanding also was that you are not tax resident if you don´t live/work in the country for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.

1. You are due to pay tax where the work is done.
2. Being not tax resident does not mean you have no tax liability
3. Agencies don't care how you arrange your matters and if you get prosecuted for tax evasion, so long as they get paid.
4. Everyone is tax resident somewhere. Some people have multiple tax residencies. No-one is tax resident nowhere.
5. Your understanding is lacking.

[Brussels Slumdog]

1. You are due to pay tax where the work is done.
2. Being not tax resident does not mean you have no tax liability
3. Agencies don't care how you arrange your matters and if you get prosecuted for tax evasion, so long as they get paid.
4. Everyone is tax resident somewhere. Some people have multiple tax residencies. No-one is tax resident nowhere.
5. Your understanding is lacking.

You pay tax where the work is done unless it's less than 180 days and other criterias are met.
If you are not a tax resident anywhere then no double taxation agreement will relevant to you.
To avoid paying tax in the host country you need to prove that it's payable in your home country

Sent from my SM-A320FL using Contractor UK Forum mobile app

[jamesbrown]

You pay tax where the work is done unless it's less than 180 days and other criterias are met.

Typically, false. It's a common mistake to confuse tax on worldwide income (e.g. based on residency, which is in turn based on residency criteria) with tax in general. The general rule, with few exceptions, is that income tax is paid, from day one, where the work is done.

[BlasterBates]

Generally, you are liable for tax for any income earned in any country. For example if you own a flat in Croatia and you get rent, you are liable for tax in Croatia, even if you've never been there.