Working abroad with UK limited company and abroad limited company

[kee]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Keep invoicing the contract from my UK company.
- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?

[WTFH]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?

Have you checked that your client is happy for you to be working from a country in South America?

[kee]

Have you checked that your client is happy for you to be working from a country in South America?

Yes

[Fred Bloggs]

Have you checked that your client is happy for you to be working from a country in South America?

I was going to reply to the OP earlier but I couldn't decide where to start.

[Lance]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?

have you asked the people wo pay your invoices (be that agency or procurement at the client) if they have any requirements? It may be that you have no choice other than a UK LTD.

[kee]

have you asked the people wo pay your invoices (be that agency or procurement at the client) if they have any requirements? It may be that you have no choice other than a UK LTD.

They still want to pay my UK limited company, that's why I will still have my UK company open.

[kee]

I was going to reply to the OP earlier but I couldn't decide where to start.

Any questions I can answer to make you less confused?

[Lance]

They still want to pay my UK limited company, that's why I will still have my UK company open.

you have your answer then......

The rest is about your personal taxation. Ask your accountant, and if he/she doesn't know get a better one, or get an accountant in your country of choice to help you work out what's needed. This is not a business question.

[kee]

you have your answer then......

The rest is about your personal taxation. Ask your accountant, and if he/she doesn't know get a better one, or get an accountant in your country of choice to help you work out what's needed. This is not a business question.

The accountant in the country abroad I have already sorted and all is good on their side. I'm more interested to know if I could do this from a UK point-of-view:

- Keep invoicing the contract from my UK company.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

[WTFH]

The accountant in the country abroad I have already sorted and all is good on their side. I'm more interested to know if I could do this from a UK point-of-view:

- Keep invoicing the contract from my UK company.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

If the end client is happy and your agent is happy and you've got an accountant who can work through the figures, then there isn't a problem.

The problems arise:
1. When you are searching for a new contract
2. If the client does not agree to you accessing their systems from abroad
3. You are trying to avoid taxes
4. Rate negotiations - when the client realises that an offshore resource can do the job, then why pay UK rates
5. Time zones for meetings.
etc.