Tax implications of working outside UK with UK ltd

[wildfire]

I currently work on a freelance basis through my UK based ltd. I usually get between 5 and 10 days work a month. Later this year I plan to emabark on a round the world trip and hope to continue the freelance work as I travel. My question is therefore what are the tax implications of doing this? I will be out of the UK for a year, but will not be resident in any one country for that period. I am likely to be working whilst in China, Australia, New Zealand and USA, would I have to pay tax to those countries? To clarify, all my work will be coming from UK based sources and will be billed through my UK based ltd.

Thanks
W

[BlasterBates]

If you bill directly to a UK agency usually no problem, all UK taxable as the 183 day rule is pretty universal, though there are exceptions. I would visit an accountant about whether you qualify for exemption.

[expat]

If you bill directly to a UK agency usually no problem, all UK taxable as the 183 day rule is pretty universal, though there are exceptions. I would visit an accountant about whether you qualify for exemption.

Firstly, that is a question for the tax authorities of each country where you do work.

Secondly, the usual 183-day rule is usually about tax residence, not tax liability for work done there. What that means is that if you spend > 183 days in a country you are resident there and due for tax there on all worldwide income. If you are in a country for < 183 days, you are liable for tax on income earned there, just not on income earned elsewhere.

That is, again, a matter for each individual country: the UK's HMRC does not get to make the rules for other countries.

Thirdly, I believe that many (most?) countries regard you as working there if you are there and you work. I remember reading of one guy (sorry no link) who was UK resident, UK Ltd Co, had a UK client, and took his laptop on "vacation" to the US and did some remote work there: the US regarded him as working in the US, which invalidated his visa and made him liable for tax. They had no sympathy with his claim that he was in the US but the work was in the UK.

But obviously, DYOR.

[BlasterBates]

Firstly, that is a question for the tax authorities of each country where you do work.

Secondly, the usual 183-day rule is usually about tax residence, not tax liability for work done there. What that means is that if you spend > 183 days in a country you are resident there and due for tax there on all worldwide income. If you are in a country for < 183 days, you are liable for tax on income earned there, just not on income earned elsewhere.

That is, again, a matter for each individual country: the UK's HMRC does not get to make the rules for other countries.

Thirdly, I believe that many (most?) countries regard you as working there if you are there and you work. I remember reading of one guy (sorry no link) who was UK resident, UK Ltd Co, had a UK client, and took his laptop on "vacation" to the US and did some remote work there: the US regarded him as working in the US, which invalidated his visa and made him liable for tax. They had no sympathy with his claim that he was in the US but the work was in the UK.

But obviously, DYOR.

The key thing is billing htrough a UK agency, and for work which is delivered to the UK. That is not a problem as the "business" is in the UK and you're just dealing with residency.

Just to get things in perspective. If a UK manager went to the Bahamas for a months holiday but did some work on his laptop, no-one in the Bahamas is going to knock on his door asking for tax for work done there, until he oversteps the residency limit.

[wildfire]

The visa issue is something that I had considered. I am planning to get a working holiday visa for both Australia and New Zealand. It may just be a case that I will not bill for any work whilst in China and bill for it once in Australia.