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Does SRT apply to limited companies?

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    Does SRT apply to limited companies?

    If I open up a limited company in the UK and I work as a contractor for an organization here in the UK. My salary is paid into the limited company. I work remotely though in another country. Assuming I meet all of the criteria here:

    https://www.gov.uk/tax-foreign-incom...;re%20checking

    Does this mean I would be considered as a non tax resident and my salary would not be taxed in the UK?.

    #2
    Please read the RDR3 guidelines you have already been told about. The answers are written there in plain English. There's even a fair number of worked examples that you can identify with. If you don't read the information you've been given already you'll never understand it. Especially study carefully the statutory residence tests and split year treatment.

    Then, look up to see if there's a dual tax treaty in force between UK and Turkey. Then read that too. It will tell you which jurisdiction has the right to tax you under different circumstances.

    Bear in mind that it is possible you will pay tax in both the UK and Turkey. Your detailed situation depends what is taxed where. Nobody here can give you instant answers no matter how many times you ask.
    Last edited by Fred Bloggs; 11 December 2022, 15:09.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

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      #3
      Originally posted by Bidi View Post
      If I open up a limited company in the UK and I work as a contractor for an organization here in the UK. My salary is paid into the limited company. I work remotely though in another country. Assuming I meet all of the criteria here:

      https://www.gov.uk/tax-foreign-incom...;re%20checking

      Does this mean I would be considered as a non tax resident and my salary would not be taxed in the UK?.
      If you can't understand the different entities in play here you are going to get absolutely nowhere.

      Firstly you salary is NOT piad in to the limited company. The money you charge your client is. You salary is what comes out of your LImited company to you.
      And SRT is based on the individual and affects the taxes of that individual, NOT the company. It's about personal taxation.

      If you can't get your head around those absolutely basic facts of the situation god help you when you try digging a bit deeper. You'll never find the answer to situation you don't even understand.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #4
        Bidi You might not like the tone, but this is very important to understand.
        Down with racism. Long live miscegenation!

        Comment


          #5
          Originally posted by Bidi View Post
          If I open up a limited company in the UK and I work as a contractor for an organization here in the UK. My salary is paid into the limited company. I work remotely though in another country. Assuming I meet all of the criteria here:

          https://www.gov.uk/tax-foreign-incom...;re%20checking

          Does this mean I would be considered as a non tax resident and my salary would not be taxed in the UK?.
          The problem is your business will be registered in the UK. For your Ltd income to be considered as foreign income HMRC will probably expect proof that you registered your business in the country where you work remotely and also that you submitted a tax return, otherwise I expect that they'll simply tax it in the UK and you'll end up in a very protracted legal wrangle.

          Even if you are resident in the other country this will be probably classed as UK income and hence subject to UK tax.

          https://www.gov.uk/tax-uk-income-live-abroad

          You usually have to pay tax on your UK income even if you’re not a UK resident.
          You really need expert advice on this.
          Last edited by BlasterBates; 12 December 2022, 10:04.
          I'm alright Jack

          Comment


            #6
            Originally posted by BlasterBates View Post

            The problem is your business will be registered in the UK. For your Ltd income to be considered as foreign income HMRC will probably expect proof that you registered your business in the country where you work remotely and also that you submitted a tax return, otherwise I expect that they'll simply tax it in the UK and you'll end up in a very protracted legal wrangle.

            Even if you are resident in the other country this will be probably classed as UK income and hence subject to UK tax.

            https://www.gov.uk/tax-uk-income-live-abroad



            You really need expert advice on this.
            Exactly. OP doesn't appear to understand the difference between the company and him/herself. I sense a Black Adder style cunning plan. Not a chance that's going to end well.
            Public Service Posting by the BBC - Bloggs Bulls**t Corp.
            Officially CUK certified - Thick as f**k.

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