Scottish LP, is it possible to work with UK customer?

[Serni]

Hello,
I have Scottish LP which I am using for the trading outside of the UK. It's very convenient for me and I officially and legally don't pay taxes for the activity I do outside of the UK.
Now I am having the new client from the Northern Ireland, which is the part of the UK. I want to buy goods from Russia and to sell him.
If I do it from the Scottish LP, which consequences I will meet? How could I do that legally?
Thank you.

 

[CaptK]

1. VAT @20% there is no way round that.
2. Corporation tax.

You are better off to set up a Seychelles or BVI to sell to the UK.

So long as you are not a UK resident.

 

[fshore]

1. VAT @20% there is no way round that.
2. Corporation tax.

You are better off to set up a Seychelles or BVI to sell to the UK.

So long as you are not a UK resident.

That is not correct. Vat depends on where the goods is shipped from and the terms of the sale, not where the company is incorporated.

 

[CaptK]

That is not correct. Vat depends on where the goods is shipped from and the terms of the sale, not where the company is incorporated.

UK company selling to a UK company VAT is applicable. Company in Scotland selling to a company in Northern Ireland, means that he is liable for import duty regardless of whether it gets delivered direct from manufacturers.

I dropship electric scooters from China to UK then distribute to resellers. I could ship from an offshore company and not pay VAT but my aim is to build it up and sell.

 

[JustAnotherNomad]

I'm not an expert on UK taxes or import duties (never been involved with physical products), but:

1. As @fshore wrote, VAT does not really depend on where a company is incorporated. It's about where goods are are shipped from and to whom, and at what volume (thresholds for VAT registration).
2. Why would a partnership have to pay corporate income tax? And even more so, even if it was a corporation, on what grounds? Corporate income tax requires permanent establishment. I really could not imagine that having UK clients would trigger permanent establishment rules, let alone if it's only one client.

I would recommend OP to talk to a UK accountant.

 

[fshore]

UK company selling to a UK company VAT is applicable. Company in Scotland selling to a company in Northern Ireland, means that he is liable for import duty regardless of whether it gets delivered direct from manufacturers.

I dropship electric scooters from China to UK then distribute to resellers. I could ship from an offshore company and not pay VAT but my aim is to build it up and sell.

I advice you to check the vat rules again and incoterms.