Leaving the UK - Tax Questions

[themistry]

Hi all,

I am leaving the UK for good from the end of this month. Can anyone point me in the right direction for information/forms to set my tax status as non resident?

Also, I will be keeping my LTD company as I may be doing some work from abroad. If I am non resident, when I take a salary payment, I presume I should not be paying any NICs (business or personal) or any PAYE. Is that correct?

My accountants have pretty much told me they will not advise me on this situation, which im very dissapointed about, seeing as though I have recommended them at least 10 times on this board.

Thanks
TM

[tim123]

My accountants have pretty much told me they will not advise me on this situation, which im very dissapointed about, seeing as though I have recommended them at least 10 times on this board.

Because they are not qualified to do so. No UK only accountant will advise
you on the tax status of working through your UK limited in another county as that will depend upon the other country's rules, not the UK ones.

tim

[DonaldG]

Because they are not qualified to do so. No UK only accountant will advise
you on the tax status of working through your UK limited in another county as that will depend upon the other country's rules, not the UK ones.

tim

I have to disagree, a good accountant will be able to advise on this, my firm certainly would as it is not that an uncommon situation these days.

If you want to PM me i can give a few pointers, but would need further info, or i would recommend speaking to a new accountant in your area. To start you off have a trawl through the Revenue website, also download a P85 form, which should give you a few pointers.

[tim123]

I have to disagree, a good accountant will be able to advise on this,.

Only if he is so qualified. If he isn't qualifed he will be breaking his professional rules by advising.

So what you are saying is that only accountants qualified in other country's tax systems are good acountants.

I can't agree with you

tim

[Gonzo]

1. Have a look for form P85 from HMRC - this is how you tell them you are leaving the UK.

2. Find an accountant in your new country who can advise you on the implications of running a UK company while you are there. The rules vary from country to country and I would not expect a UK accountant to be prepared to advise you on this.

In some circumstances, you will find that your UK company will be treated as tax resident in your new country when you move there.

[DonaldG]

Only if he is so qualified. If he isn't qualifed he will be breaking his professional rules by advising.

So what you are saying is that only accountants qualified in other country's tax systems are good acountants.

I can't agree with you

tim

What i meant by a "good" accountant, is someone with experience in overseas tax, doesn't mean if you don't have this you are a bad accountant. Maybe I should have said "appropriately qualified" rather than "good" - sorry for misleading.

However if the the original accountant was really good he should maybe have referred onto someone with this experience, there will be a number of small to medium sized firms, who would be able to help and will be affiliated to overseas firms, so accounts and tax returns for both countries can be prepared by the same firm - www.uhy.com

[NotAllThere]

Hi all,

I am leaving the UK for good from the end of this month. Can anyone point me in the right direction for information/forms to set my tax status as non resident?

Also, I will be keeping my LTD company as I may be doing some work from abroad. If I am non resident, when I take a salary payment, I presume I should not be paying any NICs (business or personal) or any PAYE. Is that correct?

My accountants have pretty much told me they will not advise me on this situation, which im very dissapointed about, seeing as though I have recommended them at least 10 times on this board.

Thanks
TM

Any income earned through your ltdco will be taxed locally - assuming the work is done locally. Residency of companies is complicated. Personally, I'd set up a local ltd, and work through that.

Anyway - you need to fill in P85 and read IR20.

[BlasterBates]

This sounds horribly complicated, using the same company which suddenly leaves the UK half way through the tax year, but continues to be run, and have income. This UK Ltd will need to be registered somewhere, usually as a branch in another coutry. Doing this in the EU is no problem, but is more than likely very difficult if you are outside the EU.

I would recommend you make a clean break, shut down your Ltd. Your accountant is quite right in not wanting you support you with overseas activities. You need to set up a branch in your overseas location, which would not be subject to UK tax, but this will need to have its own documentaion, which only overseas accountants can provide. The inland revenue would also require this proof.

[themistry]

Hi guys,

here is my situation.

I am going travelling for 6 months (Oz, Thailand, NZ etc etc). After this time, I am due to settle in Canada.

I did not intend to work whilst abroad, however my current client (based in Finland but via a UK agency) wants me to provide remote services where possible, at least through January.

I will not be looking for new work to put through the LTD.

So, I wanted to

1) Set my self as being non resident, which I will be from the end of this month.
2) Leave my LTD open for this current role
3) Stop taking a salary from next month and just take dividends while away on my trip until the company account is exhuasted.

I will not be resident of a country for at least 6 months (until I enter Canada to stay), so I'm not sure about if I pay tax to anyone.

Any help appreciated.
TM

[themistry]

Also, thanks to the replies so far

TM