EU Ltd for EU clients?

[BlasterBates]

The question still remains though: will the Cypriot Ltd incur a 25% corp tax?

If you're working in the UK then you would have to register your company in the UK and you'll be subject to UK tax even if it's a foreign company. Where the client is is irrelevant, what matters is where you are. You really need to speak to an accountant.

[northernladuk]

I've been contracting for many years now, and as with many things, when you start from zero with no guidance at all, it's only natural to want to explore your options. Then again some people might be happy with not exploring any option, ever (might as well be an inside ir35 or perm!).

Never a truer word spoken.

[Skag]

Well it's irrelvant now but we get people with these fancy ideas that do get work through UK agents and forget that their offshore model won't work because no agent will touch them. I don't think working with an offshore LTD is one thing and tax is another when the first won't allow the second to be an option if you get me.

But you've confirmed your situation is different so not worth consideration now.

I've been contracting for many years now, and as with many things, when you start from zero with no guidance at all, it's only natural to want to explore your options. Then again some people might be happy with not exploring any option, ever (might as well be an inside ir35 or perm!). There's also a lot of hearsay about structures and tax efficiency, which need to be evaluated if you're a curious bunch.

Otherwise, yes, legislation on offshore Ltd, taxation treaties etc are documented and available online.

[northernladuk]

It's not through a UK agent actually, it's from own connections, and via an EU agency.
An issue to what though? I think an agent not working with an offshore Ltd is one thing, tax treatment is another... I think I'll have to speak to an accountant to clarify taxation and eligibility criteria.

Well it's irrelvant now but we get people with these fancy ideas that do get work through UK agents and forget that their offshore model won't work because no agent will touch them. I don't think working with an offshore LTD is one thing and tax is another when the first won't allow the second to be an option if you get me.

But you've confirmed your situation is different so not worth consideration now.

[Skag]

How do you get this business? Is it via UK agents? UK agents generally won't work with offshore LTD's. If you get them in a different way then maybe not an issue.

It's not through a UK agent actually, it's from own connections, and via an EU agency.
An issue to what though? I think an agent not working with an offshore Ltd is one thing, tax treatment is another... I think I'll have to speak to an accountant to clarify taxation and eligibility criteria.

[northernladuk]

How do you get this business? Is it via UK agents? UK agents generally won't work with offshore LTD's. If you get them in a different way then maybe not an issue.

The question still remains though: will the Cypriot Ltd incur a 25% corp tax?

I think you've jumped too many steps and are asking a question that would be answered if you'd gone through the process from the start. Start from the beginning and work out the art of the possible and this question, and many others that you haven't thought of yet will become apparent. If you are working in the UK and get taxed on that basis the Cypriot company may not be needed as it doesnt achieve the outcome you are trying to reach.

[Skag]

If you are working from a location in the UK remotely for EU clients then it is still a UK business. You could only work through an EU company if you travel to the EU to carry out the work, and then it would be taxable in that country. Your business is located where you do the work not where your clients are.

The question still remains though: will the Cypriot Ltd incur a 25% corp tax?

[BlasterBates]

If you are working from a location in the UK remotely for EU clients then it is still a UK business. You could only work through an EU company if you travel to the EU to carry out the work, and then it would be taxable in that country. Your business is located where you do the work not where your clients are.

[Skag]

The trading vehicle doesn't matter. It's where you are tax resident that matters. So, given that, what do you think?

So a Cypriot company will take 25% corp tax (come Apr 2023) and treated as a UK company?

[malvolio]

The trading vehicle doesn't matter. It's where you are tax resident that matters. So, given that, what do you think?

[Skag]

Is it worth creating and maintaining an offshore Ltd company to invoice EU clients, if I'm based in the UK, running costs aside?
I get 50% of my clients in EU these days and I wondered. if it's worth the hustle, and if not, why. I can still invoice my UK clients from my UK ltd. Corp tax efficiency is obviously the reason. I also know that dividends are taxed in the UK, but what if I'm not planning to take out any dividends from the EU company?