Can I remain a UK company director if I move abroad?

[andav]

Hi

I'm considering moving to live permanently in Eastern Europe. I plan to register as a resident and pay taxes there instead of the UK.

However I currently run a small UK company.

I've been told that I should dissolve this company and setup a company in Eastern Europe instead.
I was told that HMRC could use the fact that I'm still a UK company director against me, and try and get me to pay UK personal income tax /capital gains tax etc - even though I will be living in Eastern Europe and paying taxes there. Is this true?

To me it doesnt make sense - as if I'm living abroad and paying taxes there, how can I be liable for personal taxes?

I'd rather keep my UK company, as moving it will be hassle. But I don't want to get on the wrong side of HMRC obviously......

Any ideas?

 

[Cam @ CMZ Accounting]

I think the issue here is more to do with the residency of the company - normally if the company was incorporated in the UK it would be treated as UK resident and you'd pay UK corporation tax here. It gets more complicated if you move abroad, because the management and control of the company is no longer in the UK - and the foreign country may have taxing rights over the profits generated by the company. Due to the complex nature of the issue, you'd probably have to pay increased accountancy fees (both in the UK and abroad) to make sure the correct taxes are paid in both countries.

 

[Chart Accountancy]

You should check if the country you are moving to has signed double tax treaty with the UK

https://www.gov.uk/government/collections/tax-treaties

Ideally, you should discuss your company's and personal tax position with your accountant in the UK as various options can be considered depending on your future plans.

 

[andav]

Excellent thanks Cam

I think I'll just dissolve my UK company and setup as a sole trader abroad.

 

[Chart Accountancy]

You can just set up a branch abroad and keep your company, you don't have to dissolve it if you don't want to.

 

[Chart Accountancy]

With regard to what it has been said above, you don't have to pay tax in both countries, you or your accountant will jus have to check the double tax treaty. The accountancy fees for a non UK resident company are low as the amount of work is significantly reduced. You just need to hire a local accountant for the overseas branch. I have a few similar clients. This makes things easier if you decide to come back to the UK.