Ltd in UK, living in Belgium, first contract in Spain :)

[Tiresias]

Hello,

I have a rather complicated situation , maybe some of you can help me answering my 2 questions:

Here is the use case:
1. ltd is in UK
2. Domicile in Belgium
3. i may have a long term contract in Spain.

Questions:
a. Can i benefit tax relief for the travel/hotel from my home (which is my permanent workplace then) to spain ?
b. To which country would I pay the PAYE and National Insurance?

(my guess is :
a. yes
b. in spain )

Can anyone out with experience on this can help me?

Thanks you very much.

[AtW]

Are you resident in UK?

[Tiresias]

I am not sure what is the definition of Resident.
According to HM revenue & custom 490, the definition is :

• an employee is resident in the UK if he or she is physically present here on a
regular or frequent basis
• an employee is domiciled in the UK if the UK is their permanent home

In my case, as it will be my first contract, and because I will be outside of UK (in Spain) to work/live during the week, I would say that I will NOT be resident.
And i will not be domiciled in UK neither (in Belgium),

[AtW]

Are you currently tax resident in UK?

[Tiresias]

Intuitively and from what i read on the internet i would say no, i am not tax resident in uk. only my ltd is based in uk.
but i am not sure about the meaning of tax resident.

[AtW]

Intuitively and from what i read on the internet i would say no, i am not tax resident in uk. only my ltd is based in uk.
but i am not sure about the meaning of tax resident.

How many days have you physically been in UK in the last 10 years?

[Tiresias]

less than 2 weeks,

[AtW]

less than 2 weeks,

Ok, I am not a lawyer or accountant and can't provide such advice, however if you were never a UK tax resident, which it sounds you ain't at the time, then having an Ltd in UK should not make you liable to personal UK taxation (income tax etc).

So it's likely to be whatever it is between Belgium and Spain.

I'd recommend to get professional advice on this matter rather than ask in forums - some stupid mistake with taxation can cost a lot later.

[ASB]

I am not sure why you have a uk company. Though at a rough guess I assume you see some sort of advantage.

In any event, from your description, the uk authorities would likely consider the ltd as both resident and domiciled in belgium.

the belgian authorities probably would too.

however the Spanish authorities would probably see it as resident in spain. That is where control is.

You are likely tax resident in belgium. Akso likely in spain. So you will be taxed in both.

However the dtas in place should provide relief so that the highest is what is required.

The situation on social security is more a matter of choice. At least for 3 years of temporary residency. You can generally elect to oay ss in your country of domicile.

However, should you choose to pay a salary - getting an nt tax code as a uk company - and also bill from there and pay ct on the profits then you may be ok. Declare the income on your belgian tax return of coursr.

Shoul there be an investigation in dues course it will likely turn out this treatment is wrong and will take some time and expenses to resolve.

[AtW]

I am not sure why you have a uk company. Though at a rough guess I assume you see some sort of advantage.

Some countries in Europe require pretty steep shareholder capital - 35-40k euros before company is formed, so it's a lot easier to create it in UK with 1 euro capital!