Director for 2 companies in 2 Countries.. What happens?

[gipsyair]

Good afternoon all,

I am operating a small Ltd company in the UK, doing contracts around the UK, Europe and Africa.

I'm originally from Denmark, but been living in the UK for nearly 10 years and as such knows the rules better here than anywhere else. I have been looking into buying a retirement property in Denmark and renting it out under the cover of a Danish Ltd company and maybe even doing some contract work under that company.

The question now is: if I am a director of a company in the UK and one in Denmark and I pay myself PAYE and dividends according to the respective rules of the 2 countries systems, how will I be taxed on my personal tax? I will be owning property in both countries and I will be spending time in both countries, but can I keep my income from the Danish company on the Danish tax system and the British income under UK tax system or does it get super complicated with calculations of how many days I spend where? If anything I spend more time in Africa than either of the 2 other countries..

Any insight will be grately appreciated!

Best regards

Mike

[BigTime]

Sounds like you can consider yourself a nondom in the UK. If you spend under 90 days here a year, perhaps you should domicile somewhere else if there's a benefit.

[Clare@InTouch]

Are you tax resident here? How many days are you in the UK in each tax year, this and the previous ones?

If you're resident but non-dom then you can either be taxed on your worldwide income, or claim the remittance basis. If you claim the remittance basis and you've been resident for 7 out of the previous 9 tax years you'll be subject to the £30k tax charge as well as losing any personal allowance, so you need a lot of income to make it worthwhile!