EU citizen, UK company, long term traveling and remote work

[bigspender]

Hello,

I am an EU citizen and I am looking to create a UK company for a service business.

I will be traveling abroad shortly and I'm unsure when I will come back to the UK (who knows if I can later with Brexit?). However, am I right in thinking that if I live and perform all my work (and as a director) outside of the UK, I will not have to pay UK personal income taxes, and only the corporate tax?

What would happen if I came back and worked in the UK 4 months out of 12 and then kept traveling?

If I 'hired myself' from the company, would this count as a business expense that reduces profit and tax liability? Could you not hypothetically hire yourself 100% of the revenue, reducing the profit to 0, inuring no tax rather than paying dividends?

Many thanks

NOTE: Similar thread here: http://www.ukbusinessforums.co.uk/t...d-company-dividends-and-digital-nomad.342469/

 

[Scalloway]

You would need to check your tax residence.

https://www.gov.uk/tax-foreign-income/residence

If you are employed by your limited company your salary is an allowable deduction from company profit. You would need to bear in mind what the tax regimen is in your country of tax residence for the tax you will pay on it.

You note that things will get more complicated when Brexit happens.

 

[TheCyclingProgrammer]

Tax is normally paid a) where the work is done and often also b) where you are tax resident, which may not be the same place. If there is a double taxation treaty in place between the two locations you may get credit for tax paid where the work was done toward your tax bill where you are tax resident, to avoid you paying tax twice.

If you remain UK tax resident then you will need to report your worldwide income on your tax return. You will need to check the tax rules in the location that you are actually performing the work too.

If you're working through a UK limited company and remain UK tax resident then in theory you should have no further UK income tax liability for your worldwide income if its all booked through the Limited company, your company would simply pay corporation tax on it.

BUT, you may have difficulties using your Limited company if providing services to clients while you are in their country. You will need to be aware of local tax and employment laws wherever you go.

 

[bigspender]

Thank you all very kindly for your feedback. Very helpful.