Can someone share some experiences with owning a UK company as a non-resident of the UK?

[scooterguy]

khinkali said:
The original post mentioned "running a UK business from abroad" and titled the thread "...owning a UK company as a non-resident of the UK".

So we're talking about a non-resident employee of a UK company who doesn't do their work in the UK, so they might not be subject to UK income tax. (they could be taxed in some other country where they live and/or work)

If they are diverting profits by excessive pay, HMRC can make the salary non-deductible for UK corporation tax.
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Oh I see your point now. That makes sense.

In my case though, like you mentioned, it would look reasonable and be most certainly deductible from corporate tax.

 

[khinkali]

scooterguy said:
it would look reasonable
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It looks reasonable to me.

scooterguy said:
and be most certainly deductible
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I find that certainty quite scary. We're two intellectually curious, but largely ignorant people trying to understand the boundaries of complex regulation, implementation and enforcement. It's great to do the work to find the right questions, which helps us find the right advisor (and avoid paying for a lot of unnecessary advice).

But we still need a grown-up to check the details in a specific case. One nice thing in the UK is that a chartered accountant carries quite a lot of insurance, so if you are open with them and they give the wrong advice, you're likely to get your costs covered if things go bad with HMRC.

 

[scooterguy]

khinkali said:
It looks reasonable to me.



I find that certainty quite scary. We're two intellectually curious, but largely ignorant people trying to understand the boundaries of complex regulation, implementation and enforcement. It's great to do the work to find the right questions, which helps us find the right advisor (and avoid paying for a lot of unnecessary advice).

But we still need a grown-up to check the details in a specific case. One nice thing in the UK is that a chartered accountant carries quite a lot of insurance, so if you are open with them and they give the wrong advice, you're likely to get your costs covered if things go bad with HMRC.
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Yes, I agree, and thanks for the advice. Of course that I would hire an accountant if I end up choosing to incorporate in the UK, and I agree with you that these discussions always help be better prepared before taking any decisions.

 

[JustAnotherNomad]

mok said:
Only if you have an SSN or ITIN. At least as far as I'm aware.
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Only as a US resident, as far as I know. As a non-resident, even with an ITIN, it's not possible.

mok said:
Only if you have an SSN or ITIN. At least as far as I'm aware.
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Only as a US resident, as far as I know. As a non-resident, even with an ITIN, it's not possible.

Maybe this thread is interesting for you: The treaty non-resident UK Ltd. - the best-kept offshore secret?

Last edited: May 4, 2023

 

[fshore]

The salary should be reasonable, and similar to other other companies salaries to avoid being regarded as profit shift. How much profit the company makes shouldn't really matter, but a £5M salary is probably not reasonable for a small company.