Online business based outside UK.

[Joeyk07]

Hello,

I am currently a UK citizen and I have a registered limited company which I have used my UK home address as the company address.

This company is new and whereas before my old LTD company (which was VAT registered) manufactured a product and distributed it within the uk and europe, I now use another UK company to manufacture on my behalf and I use the internet / email to sell to customers. I also use various UK transport companies to handle the distribution.
My new company is not registered for VAT as I do not intend to turnover £70K per annum.

I am currently in Australia and I am controlling the business from my temporary address here, I do not intend on coming back to the UK and I will also be travelling to various countries around the world for the foreseeable future.

All payments are taken online via Sage Pay credit/debit card system. I currently use a UK high street bank business account.

My question is this: What are my Tax liabilities and am I exempt from VAT charged to me from the UK businesses I'm dealing with? I have considered de-registering my company from companies house and also my residential address will not be in the UK.

I'm currently researching the setting up of an offshore company but I'm not sure of who to use and whether this is the right choice for what I'm attempting to do.



Many thanks,

Joe

 

[GraemeL]

Hello Joe,

Your questions are way beyond the skill set of this forum. You might try posting on the financial or legal forum?

But really you need professional advice, not 'guesswork' from here.

Best of luck - I envy you in Australia

G
(Born in Ballarat)

 

[TODonnell]

If you're a UK company (i.e registered in the UK) and you generate income of more than 73k a year, then you must pay VAT to the UK government.

This means you're liable to the UK tax rules, and you must pay VAT.

If you, however, dissolve this UK registered company and trade from outside the UK with a non-UK company then that's a different matter.

The tax rules of the country you or your new company is trading from will apply.

Contact your local tax office in Australia.

http://www.ato.gov.au/

 

[Mitchells Bristol]

If you're a UK company (i.e registered in the UK) and you generate income of more than 73k a year, then you must pay VAT to the UK government.

The UK VAT registration threshold is now £77k.

The company will also pay UK corporation tax on any profits it makes at a rate of 20%. You could, in theory, withdraw all of the profits as a salary meaning there would be no UK corporation tax. Providing you remain non-resident there would be no UK tax on the salary either. Hence you can completely avoid paying UK taxes, and merely account for any tax due on the salary in Australia.

 

[365cloudit]

Hi
if you are personally out side the UK, then your personal tax may be wiaved as you would be a non uk resident (provided you spend less than 90 days in the UK)

for the business then it would be liable for uk tax law

 

[Deleted member 138423]

Accountancy advice required for a legal standpoint!