Except that there's no clear boundry as for at what moment a company changes its state from "not being managed from country A" to "being managed ....". As such, it may remain UK tax resident only.
Is UK Ltd automatically formed as "non-resident" if I'm not a resident of UK?
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The boundaries are indeed debatable despite being worded quite nicely.
Place of incorporation
Management and control
Place of business activities
Where is the bankaccount located
Where is the website hosted
Where does fulfillment originate from
All done to establish Permanent Establishment.
Ive come across these questions and a small dozen of others to establish where a company is liable for paying tax.
This can lead to being tax liable in multiple countries. Then you have to add tax treated to avoid double taxation in the mix. And all of a sudden you are in the middle of a cluster f**k and need specialized help from all of the countries involved.
Be therefore aware of which road you are taking.
At one point, If my memory serves me correct, Shell in the UK wasn't happy with governmental decisions. They moved overnight the entire board to Singapore. Effectively that would then be where the decisions are taken and the UK would lose out on a lot of tax revenue. The UK government quickly gave in.
In such a case it becomes clear that there is a lot of weight put into management and control. This is different when you are a one wo/man company and at the same time it depends on the “story”.
The UK is preoccupied only that one pays taxes in the UK for his UK LTD. Right? A person, non resident, would pay them there. All is fine.
Who will chace a person in all other countries where he might stay during a year, a few months per year in each? Especially if a person doesn't stay in the countries or territories such as Europe, Australia, US and the like, but instead stays in less developed ones that aren't known for their aggressive taxation rules.
Who will chace a person in all other countries where he might stay during a year, a few months per year in each? Especially if a person doesn't stay in the countries or territories such as Europe, Australia, US and the like, but instead stays in less developed ones that aren't known for their aggressive taxation rules.
If your UK company doesn't pay tax or doesn't pay its duties, the HMRC will prosecute you. They give you lots of warning first, but then they take you to court and you lose. At that point, you have a debt against you in the UK, which if you run a business or obtain a senior position is not something you'll want to have.
If it's a big enough debt, they might try to enforce it wherever you live by sending it to debt collectors.
It's an unnecessary complication in your life that's best avoided.
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This is the probably the answer to your question.
If it's a big enough debt, they might try to enforce it wherever you live by sending it to debt collectors.
It's an unnecessary complication in your life that's best avoided.
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This is the probably the answer to your question.
You've answered to something what hasn't been said. Hence, gibberish. Not gibberish per se, but gibberish in this context. There wasn't a condition that an owner of LTD wouldn't pay taxes in the UK if he owns a UK LTD which is resident in the UK.
Learn to read carefully.
Last edited: Oct 13, 2021
I hope that you come to terms with and resolve whatever is causing your quickness to anger/aggression and rather than defaulting to attacking, instead take a moment to understand why someone might interpret your writings in a different way. Perhaps my response was perfectly reasonable for someone trying to understand what you had written, which now upon re-reading contains grammatical and syntactical ambiguities or errors.
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This is the probably the answer to your question.
The best option is a "UK-LLP" [SLP / Can(BC) LLP] if you are a non-resident, anyway, not a LTD, (although LTD is the shiny-toy) if you're a one-man-show start with a partnership <<<Oxymoron???) just need a second partner, which of course can be a legal entity, in fact both partners can be offshore-legal entities.
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