Running a UK company from abroad

[whatisbetter]

I am the director of a UK company, which I do all my contracting through. In the new year I will be moving to Canada but still will run and do work for my company.

Canada has a double tax agreement with the UK. I also intend to work for Canadian companies whilst I am there but not via my UK company.

What legal and tax issues do I need to aware of?

[Gonzo]

The first one is whether or not your UK company will become a Canadian company.

Some jurisdictions will decide that when the "direction and control" of the company (i.e. you) moves within their remit then the company does too.

For this reason there is a constant flow of directors flying over from the UK to the Channel Islands for board meetings so that their companies are seen to be resident there.

Some countries don't care, and in some you will be better off. But you need to know.

[whatisbetter]

Is it something an accountant could answer or is it highly specialised realm of the law?

[ASB]

Is it something an accountant could answer or is it highly specialised realm of the law?

It depends on your exact circs. and trading patterns. From a view of UK taxation the company is chargeable to profits (should the company be resident in the UK). However I think it is likely you could argue the company is not UK resident - but where is it's seat of control and how will that pan out in the taxation regimes of the other countries that may be involved. Also there can be interesting quirks with DTA's, since they govenr different kinds of income and may not enable you to gain relief (e.g. in Portugal I personally had to pay 15% withholding tax on services provided by my company, however under the DTA it was difficult - though eventually sucessuful - to offset this agans UK crporation tax. I didn't have any relevant personal income I could claim the offset against).

[Gonzo]

Is it something an accountant could answer or is it highly specialised realm of the law?

In general there is no reason why a normal UK accountant would know anything about the Canadian tax system and likewise there is no reason why a normal Canadian accountant would know anything about the UK system.

I would look for one that does know both systems - possibly an accountant in Canada who is a Brit that emigrated there but make sure their knowledge is current and they do indeed cater for migrants.