What's the tax position potential:
A) OWNER = Non Resident UK Citizen [Resident in 3rd country].
B) Company = Low/Zero Tax Country.
If newish company [pre-banking established] - parks funds (revenues - direct from payment processor)temporarily in a personal bank in the UK [bank solely used for] - before shifting them to company bank(s) or suppliers/operational costs.
Under UK law, sole-traders can use (as residents) personal accounts, however LTD it is expected to have commercial accounts (though not always possible nor law), as a overseas company there appears to be some greyness.
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I.e an example.
UK Non-Resident owns a St Kitts company, this does business via a payment processor, the St Kitts had revenues come in before they are available to secure a commercial bank account - i.e they had a client or clients wanting the product/service so completed the payments via a payment processor [in the name of the company] - and they park those funds in the UK [like companies park funds in any other country].
Would the UK non-resident or even the overseas company be liable for taxation in the UK.
Last edited: May 7, 2023
A) OWNER = Non Resident UK Citizen [Resident in 3rd country].
B) Company = Low/Zero Tax Country.
If newish company [pre-banking established] - parks funds (revenues - direct from payment processor)temporarily in a personal bank in the UK [bank solely used for] - before shifting them to company bank(s) or suppliers/operational costs.
Under UK law, sole-traders can use (as residents) personal accounts, however LTD it is expected to have commercial accounts (though not always possible nor law), as a overseas company there appears to be some greyness.
---
I.e an example.
UK Non-Resident owns a St Kitts company, this does business via a payment processor, the St Kitts had revenues come in before they are available to secure a commercial bank account - i.e they had a client or clients wanting the product/service so completed the payments via a payment processor [in the name of the company] - and they park those funds in the UK [like companies park funds in any other country].
Would the UK non-resident or even the overseas company be liable for taxation in the UK.
Last edited: May 7, 2023