Hey again!
My first one was a little more vague about how to get my company offshore and quite honestly, the replies BLEW MY MIND. This forum is incredibly helpful and so friendly. I love that we are all like-minded. I asked similar on moneysavingexpert once, and several folks condemned me for not wanting to pay taxes in UK.
Anyway, my second post is a little more specific to dropping my UK tax residency. This would be a lot easier, if I was starting the process a few months ago, but I am very aware that the new tax year is upon us, so have several questions and ideas that I want to clarify so that I don't F*** up this entire year!
I know dropping tax residency is a little grey and different for everyone, so let me start by saying I ran through the game on Guidance – Guidance – GOV.UK with some hypothetical answers and passed with flying colours. We don't have kids. Its looking increasingly likely that we won't own a house here, but if we do, then we will be renting it out (in that game above, I pretended we did own a house to make it tougher, and it didn't cause grief)
Its important to note, we currently own a UK LTD company, me and my GF are the only employees and pay ourselves a salary for the last 2 years. If we pull the trigger on this move, i will work flat out to get it all done ASAP. Anyway, my questions.
1. Should I IMMEDIETLY stop paying a UK salary? Our first one of the 2023 tax year is due in 15 days. Or is it okay to recieve a salary providing i try to keep it to no more than 3 months?
2. Im planning on stopping the 'payouts' from our Adult subscription sites right away so that they stop going into the UK LTD where they will get taxed heavily. They will just get stored up on the website itself. If all of this goes belly up, then i will just unlock them again so they go into the UK LTD again, no dramas. However, if all works out, once i open the LTD company in our chosen destination (Cyprus or Romania i reckon) i plan to unlock the payouts again so they flood into the new company account, ready for us when we move. My theory is we wont employ anyone, or pay out dividends or salary from the foreign LTD. Just keep it there during the crossover, which hopefully wont be longer than a month or two. Is that okay to do?
3. How long realistically do I have from April 6th (tax year start) to get the hell out? On one hand i see it as very liberal (no more than 183 days) but other people seem very strict and say don't even spend a month here. As it stands i feel confident that 90 days should be my cut off in UK. Giving me 3 months, which feels okay to me to get stuff done.
4. At what point do i have to tell HMRC anything? And how is that done... is it just a website registration thing where i have to prove im living abroad via a rental contract or something?
5. Lastly, is it okay to leave smaller chunks of our business going into the UK LTD. For no reason other than it just being easier at this point. Of course we wont be pulling any salary or dividends from it, but just letting it build up in the UK company account. Or is it a case that even if we dont pay ourselves, that is something they will deem as "living in UK still"? If i absalutly MUST move it, then i will. But if its totaly normal to do as i explained, then its a nice option to have.
Thanks all
My first one was a little more vague about how to get my company offshore and quite honestly, the replies BLEW MY MIND. This forum is incredibly helpful and so friendly. I love that we are all like-minded. I asked similar on moneysavingexpert once, and several folks condemned me for not wanting to pay taxes in UK.
Anyway, my second post is a little more specific to dropping my UK tax residency. This would be a lot easier, if I was starting the process a few months ago, but I am very aware that the new tax year is upon us, so have several questions and ideas that I want to clarify so that I don't F*** up this entire year!
I know dropping tax residency is a little grey and different for everyone, so let me start by saying I ran through the game on Guidance – Guidance – GOV.UK with some hypothetical answers and passed with flying colours. We don't have kids. Its looking increasingly likely that we won't own a house here, but if we do, then we will be renting it out (in that game above, I pretended we did own a house to make it tougher, and it didn't cause grief)
Its important to note, we currently own a UK LTD company, me and my GF are the only employees and pay ourselves a salary for the last 2 years. If we pull the trigger on this move, i will work flat out to get it all done ASAP. Anyway, my questions.
1. Should I IMMEDIETLY stop paying a UK salary? Our first one of the 2023 tax year is due in 15 days. Or is it okay to recieve a salary providing i try to keep it to no more than 3 months?
2. Im planning on stopping the 'payouts' from our Adult subscription sites right away so that they stop going into the UK LTD where they will get taxed heavily. They will just get stored up on the website itself. If all of this goes belly up, then i will just unlock them again so they go into the UK LTD again, no dramas. However, if all works out, once i open the LTD company in our chosen destination (Cyprus or Romania i reckon) i plan to unlock the payouts again so they flood into the new company account, ready for us when we move. My theory is we wont employ anyone, or pay out dividends or salary from the foreign LTD. Just keep it there during the crossover, which hopefully wont be longer than a month or two. Is that okay to do?
3. How long realistically do I have from April 6th (tax year start) to get the hell out? On one hand i see it as very liberal (no more than 183 days) but other people seem very strict and say don't even spend a month here. As it stands i feel confident that 90 days should be my cut off in UK. Giving me 3 months, which feels okay to me to get stuff done.
4. At what point do i have to tell HMRC anything? And how is that done... is it just a website registration thing where i have to prove im living abroad via a rental contract or something?
5. Lastly, is it okay to leave smaller chunks of our business going into the UK LTD. For no reason other than it just being easier at this point. Of course we wont be pulling any salary or dividends from it, but just letting it build up in the UK company account. Or is it a case that even if we dont pay ourselves, that is something they will deem as "living in UK still"? If i absalutly MUST move it, then i will. But if its totaly normal to do as i explained, then its a nice option to have.
Thanks all
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