How to properly remit profits from UK LLP as an employee

[yeongsu]

Hello everyone. After joining this forum I've found that forming a UK LLP for trading is a better option for me in every manner. But I've a few concerns regarding remitting profits earned to my home country.
The only way that came into my mind was to remit the profits as salary from the business bank account in UK to my personal bank account here in my home country.
But for this I'll have to show some kind of proof to the local bank and income tax dept. that I'm an employee and hide the fact that I'm an owner/partner. Is there any proper way to do this?
I request the experienced people to guide me with this.

 

[GPT]

Several things to take into account;

1. social taxes. when you receive a salary, social taxes are due. This will conflict between your home country and the UK. It is something that can be solved however you will need an accountant/advisor for that to for instance become exempted in the UK and pay in your home country.

2. income tax. similar to above.

Easiest way is when you register as a sole proprietorship in your home country and invoice the UK company. For the UK company the accounting is easy as its "only" a periodic invoice. For you in your homecountry it is also easy as you are familiair yourself with the accounting, taxes etc. If not then its at least easy to find an accountant that can set it up for you.

Couple of things to keep in mind;

1. I assume that you are shareholder of the UK company. In some countries shareholdings are taxed.
2. Before considering being an employee, how about living of dividend?

Last but not least; the above is NOT fiscal / tax advise. Please contact someone who is completely (inside out) familiair with your personal situation. The info provided is too brief.

 

[yeongsu]

GPT said:
Several things to take into account;

1. social taxes. when you receive a salary, social taxes are due. This will conflict between your home country and the UK. It is something that can be solved however you will need an accountant/advisor for that to for instance become exempted in the UK and pay in your home country.

2. income tax. similar to above.

Easiest way is when you register as a sole proprietorship in your home country and invoice the UK company. For the UK company the accounting is easy as its "only" a periodic invoice. For you in your homecountry it is also easy as you are familiair yourself with the accounting, taxes etc. If not then its at least easy to find an accountant that can set it up for you.

Couple of things to keep in mind;

1. I assume that you are shareholder of the UK company. In some countries shareholdings are taxed.
2. Before considering being an employee, how about living of dividend?

Last but not least; the above is NOT fiscal / tax advise. Please contact someone who is completely (inside out) familiair with your personal situation. The info provided is too brief.
Click to expand...

I'm willing to pay income tax in my home country. No issues with that.
A local accountant suggested me a similar solution as yours, to send invoices for services/consultancy to the UK LLP to remit money. It attracts some extra expenses every year but I guess this is a better way than the salary thing.

Thank you for your suggestion.

 

[Zuzuud]

Hello Guys! Sorry to bring this old topic, but Im thinking about something similar.

Is it still a Good idea? How about Permanent Establisment and CFC in this case if Im living outside UK.

Thank you

 

[clemens]

valid question, would like to know what you guys thoughts are on this ?

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One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[GPT]

Zuzuud said:
Hello Guys! Sorry to bring this old topic, but Im thinking about something similar.

Is it still a Good idea? How about Permanent Establisment and CFC in this case if Im living outside UK.

Thank you
Click to expand...

You mention PE. What about it according to you?