Working abroad with UK limited company and abroad limited company

[kee]

Read RDR3 guidelines from HMRC. It explains in very understandable English under what circumstances you are not UK tax resident.

The fact you asked the question demonstrates, as I suspected all along, at the moment you simply have no clue what you're doing.

No more from me on this thread.

There is nothing to suspect mate, I am literally asking. Anyway, take care.

[Fred Bloggs]

How come I'd be still resident in the UK if I don't live in the UK anymore?

Read RDR3 guidelines from HMRC. It explains in very understandable English under what circumstances you are not UK tax resident.

The fact you asked the question demonstrates, as I suspected all along, at the moment you simply have no clue what you're doing.

No more from me on this thread.

[kee]

From what's been said, OP is going to be personally tax resident in both jurisdictions. I have done it myself, three jurisdictions at one time in a tax year. It's not necessarily a massive problem providing there's no tendency towards "hey I have a great idea" regarding personal taxation. Dual tax treaty between UK and the other country is essential reading at this point. Scrupulous record keeping of travel and finances is essential from day 1. Second piece of essential reading is document RDR3 which covers personal taxation and working outside the UK.

How come I'd be still resident in the UK if I don't live in the UK anymore?

[Fred Bloggs]

From what's been said, OP is going to be personally tax resident in both jurisdictions. I have done it myself, three jurisdictions at one time in a tax year. It's not necessarily a massive problem providing there's no tendency towards "hey I have a great idea" regarding personal taxation. Dual tax treaty between UK and the other country is essential reading at this point. Scrupulous record keeping of travel and finances is essential from day 1. Second piece of essential reading is document RDR3 which covers personal taxation and working outside the UK.

[WTFH]

The accountant in the country abroad I have already sorted and all is good on their side. I'm more interested to know if I could do this from a UK point-of-view:

- Keep invoicing the contract from my UK company.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

If the end client is happy and your agent is happy and you've got an accountant who can work through the figures, then there isn't a problem.

The problems arise:
1. When you are searching for a new contract
2. If the client does not agree to you accessing their systems from abroad
3. You are trying to avoid taxes
4. Rate negotiations - when the client realises that an offshore resource can do the job, then why pay UK rates
5. Time zones for meetings.
etc.

[kee]

you have your answer then......

The rest is about your personal taxation. Ask your accountant, and if he/she doesn't know get a better one, or get an accountant in your country of choice to help you work out what's needed. This is not a business question.

The accountant in the country abroad I have already sorted and all is good on their side. I'm more interested to know if I could do this from a UK point-of-view:

- Keep invoicing the contract from my UK company.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

[Lance]

They still want to pay my UK limited company, that's why I will still have my UK company open.

you have your answer then......

The rest is about your personal taxation. Ask your accountant, and if he/she doesn't know get a better one, or get an accountant in your country of choice to help you work out what's needed. This is not a business question.

[kee]

I was going to reply to the OP earlier but I couldn't decide where to start.

Any questions I can answer to make you less confused?

[kee]

have you asked the people wo pay your invoices (be that agency or procurement at the client) if they have any requirements? It may be that you have no choice other than a UK LTD.

They still want to pay my UK limited company, that's why I will still have my UK company open.

[Lance]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?

have you asked the people wo pay your invoices (be that agency or procurement at the client) if they have any requirements? It may be that you have no choice other than a UK LTD.

[Fred Bloggs]

Have you checked that your client is happy for you to be working from a country in South America?

I was going to reply to the OP earlier but I couldn't decide where to start.

[kee]

Have you checked that your client is happy for you to be working from a country in South America?

Yes

[WTFH]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?

Have you checked that your client is happy for you to be working from a country in South America?

[kee]

I'm moving semi-permanently (more than 6 months for sure) to a country in South America. I have a UK outside IR35 contract.

My line of thought:

- Keep invoicing the contract from my UK company.
- Open a limited company in the country I'm moving to.
- Invoice the service from the abroad company to my UK company as the service has been carried out by the abroad company.
- Pay taxes in the country abroad for both personal and company.
- Pay tax in the UK, but I foresee this will be very small as the invoice will count as an expense and no personal tax as I won't be taking dividends from the UK company.

Thoughts?