Uk Ltd and non eu/usa residence, how to do the accounting and taxing

[WoWNull]

hello,

i have few questions and hopefully, the answer i will get is considered a final thing to start doing accounting based on it.

so basically my uk ltd registered in august, i am residence in UAE.

my question is about the taxes on my ltd how they will check the income?
i have only stripe, pp and tw accounts.
even though i have other accounts which is not based on uk address but i am getting money as i am working for the ltd

so how i can make all this accounting or do i need to do accounting for these or just hide that i am doing anything

i am trying to find cheap solution for bookkeeping or free option along with some tax adviser but nothing yet.

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also if i want to get the money to my personal how i will transfer that?
do i need to consider it as a salary? and if yes do they will take tax on that amount also? and if i need to take that money without paying tax on it how i should do? i dont mind to pay tax for the company, but why i should pay tax on my personal and iam not living there =/

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some times i convert some of the money to btc for future trading, how to mention these in my accounting, does it have some law about it or something ?

 

[Sols]

Your UK company is subject to UK corporate income tax on its profits. The HMRC will know how much you owe based on the financial statement you or your accountant will prepare and submit every year.

At the moment, that's 19% with plans to reduce it to 17% next year.

You could of course choose to break UK law and lie, which would be a problem if you're audited. The HMRC will chase you across the world, and can petition courts to start going after Stripe, PayPal, and Transferwise.

If you want to pay yourself, you should look into the pros and cons of paying yourself a salary, invoicing the company as a consultant, or wait until you can pay yourself dividends. Depending on the exact structure of your business, this may or may not be subject to tax in the UK (and presumably none in UAE).

 

[WoWNull]

Your UK company is subject to UK corporate income tax on its profits. The HMRC will know how much you owe based on the financial statement you or your accountant will prepare and submit every year.

At the moment, that's 19% with plans to reduce it to 17% next year.

You could of course choose to break UK law and lie, which would be a problem if you're audited. The HMRC will chase you across the world, and can petition courts to start going after Stripe, PayPal, and Transferwise.

If you want to pay yourself, you should look into the pros and cons of paying yourself a salary, invoicing the company as a consultant, or wait until you can pay yourself dividends. Depending on the exact structure of your business, this may or may not be subject to tax in the UK (and presumably none in UAE).

Ya ofc this i will not do and lie, i will put all things clearly, but how to pay my self? And be noted that i will not take money every month maybe every 4 to 6 month

So what is the best way to do it

 

[WoWNull]

A small question following to above.

the agent said that I am not required to submit any vat or tax unless I reach an annual of 87k GBP is that correct?!

 

[Sols]

No, that's not correct. All companies must submit annual statements and financial results. If there are profits, they are subject to tax.

VAT is different and it depends on what you sell and to which countries. Look into VAT MOSS.

 

[WoWNull]

No, that's not correct. All companies must submit annual statements and financial results. If there are profits, they are subject to tax.

VAT is different and it depends on what you sell and to which countries. Look into VAT MOSS.

now iam in a big problem bcuz the agency who make it for me trun out is a middle man and now i cant get access for my companies house and i dont know what do so i can register for tax and vat

 

[Sols]

As long as you own and control the company (director/shareholder without nominees), you can always move it to a more reputable service provider. It's an easy process. They can then help you with the registrations.

Maybe @James Turner / Turner Little here on the forum can help you, or some other reliable UK service provider.

 

[WoWNull]

As long as you own and control the company (director/shareholder without nominees), you can always move it to a more reputable service provider. It's an easy process. They can then help you with the registrations.

Maybe @James Turner / Turner Little here on the forum can help you, or some other reliable UK service provider.

ya i would like to move, but the issue i dont have any login details etc..

i hope @James Turner can help and guide with this =D

 

[WoWNull]

UP...

I contact till now more than 12 accountant companies in the UK, either they reject the work with me because I am not a resident or they want to meet me in person or they don`t have the ability to work for international directors having international clients and 80%+ not based in the UK.

any help guys I need some accountant that helps me with tax and understanding the system in the UK =(.

 

[machinetheory]

UP...

I contact till now more than 12 accountant companies in the UK, either they reject the work with me because I am not a resident or they want to meet me in person or they don`t have the ability to work for international directors having international clients and 80%+ not based in the UK.

any help guys I need some accountant that helps me with tax and understanding the system in the UK =(.

I'm sorta on the same fence, although my operations have not started yet, but already incorporated in the UK (very easy btw). I was planning to have some kind of communication with a UK accountant to understand more about the system and process, thought it was easier to do so, but now your reply has gotten me a bit worried.

Have you tried looking for a more "independent" accountants and not large firms? My plan was to contact accountants from Find Top-Rated Financial Advisers, Mortgage Advisers, Solicitors and Accountants (never used it though) and see who could help me for my purposes.

I'm definitely keeping track of this thread, wish you good luck!

 

[WoWNull]

Have you tried looking for a more "independent" accountants and not large firms? My plan was to contact accountants from Find Top-Rated Financial Advisers, Mortgage Advisers, Solicitors and Accountants (never used it though) and see who could help me for my purposes.

I am searching online accountant, freelance but still nothing because they say its not in there field hopefully i found some soon.
Will check the link you provided.

I'm definitely keeping track of this thread, wish you good luck!

Thanks bro best for all.

 

[WoWNull]

So for now i get 2 companies who accept doing the accountat for me
And they will provide xero as bookkeeping

Price of one company around 1k GBP without vat

Second iam waiting there price

So as outside uk they say its easy just provide your passport copy + proof of address which is approved or having some notary stamp from same country and they will not add taxes when you take the profit.

So it will not have double taxation


So will update the thread here and see which company will be with.

 

[JohnLocke]

What company did you find for accounting for your UK company if you don't mind to share and why did some of the rejected to do the task for you ?

 

[WoWNull]

What company did you find for accounting for your UK company if you don't mind to share and why did some of the rejected to do the task for you ?

the one who gave me the quote is accounts and legal, I read some avg review about them but will see what to do in the end.

the reject reason is following

1 - I am not resident
2 - they need face to face meeting
3 - they don't have knowledge about how to deal with international client and taxation and because more than 80% of my clients are not from the UK, not sure why but this is what I understand with them.

now I contact in a total of 15 companies

12 reject
1 only accounting no tax advice (waveapp)
2 they accept waiting for final quotation

 

[xzods]

With a Non-EU/UK resident director + No permanent establishement should you pay any taxes in the UK ?

https://www.lexisnexis.com/uk/lexispsl/tax/document/393773/55KG-S061-F18C-V25H-00000-00/UK_profits_and_permanent_establishments_overview

 

[WoWNull]

With a Non-EU/UK resident director + No permanent establishement should you pay any taxes in the UK ?

https://www.lexisnexis.com/uk/lexispsl/tax/document/393773/55KG-S061-F18C-V25H-00000-00/UK_profits_and_permanent_establishments_overview

hmmm most of it i cant understand =_=
but as from the summary list


1. Has the company taken active steps to avoid a UK taxable presence, or does it have a UK PE that has entered into transactions that lack economic substance? If so, consider the diverted profits tax.

dont have UK PE

2. Does the company trade in or develop UK land? If so, consider the special rules for non-resident companies that carry on these activities and skip questions 3 to 7 (unless the company has additional, non-property-related activities in the UK).

NO

3. Is the company trading in the UK? If not, no corporation tax on income and skip questions 4 and 5. If so, go to the next question.

NO

4. Is the company's UK trade carried on through a UK PE? If not, no corporation tax on income. If so, corporation tax is payable on any profits attributable to the PE.
5. Is the company trading in the UK without a UK PE? If so, income tax is payable on any profits of this trade, but this charge may be removed by a double tax treaty.

6. Does the company have non-trading income from the UK? If so, income tax may be payable, but in many cases this charge is met by deduction at source.
7. Does the company have capital gains that are attributable to a UK PE that is trading in the UK, or that arose on a direct or indirect disposal of UK land? If so, the gain is within the charge to corporation tax. If not, the company will not have to pay UK tax on its capital gains.


8. Does the company plan to buy any UK land, UK shares or (certain types of) UK securities? If so, consider stamp taxes, land transaction taxes, and the annual tax on enveloped dwellings.

NO

9. Is the company buying goods or services from UK VAT registered persons, or itself making supplies of goods or services in the UK? If so, consider VAT liabilities and/or the obligation to register for VAT in the UK.

YES

10. Does the company have employees in the UK? If so, PAYE, NICs and apprenticeship levy may be due.

NO



and as result i am thinking as this list i am not paying tax but this is not what all accountant companies says, btw if i plan to visit uk is there any place or government place i can get all my answers or i need to go to lawyers and some legal accountant for such ?

 

[xzods]

Accountants want your money, but I'm not sure about this tax situation. We need experienced members to tell us

 

[TacitusKilgore]

Generally speaking: a company incorporated in the UK is a UK tax resident. That is a fact whether or not it carries on any business in the UK or has a "permanent establishment". If you register a UK limited company it will most likely be a UK tax resident and subject to corporate income tax in the UK.

As I said this is generally speaking and there are some unique situations where this might not be the case. For more info check out this link: United Kingdom - Corporate residence

 

[WoWNull]

ok so as i understand form few accountants, i reach to contact #27 =D still

as a non resident i can take out 1k gbp every month without paying taxes.

but this i dont know about it if i have another director

now the last accountant he said you can`t do anything without a regular bank account and without it you will have issues, so now again i am suffering to search for legit uk director with reasonable price along with making bank account.

 

[Sols]

You don't need to have a UK bank account to operate a UK bank account, but it's recommended. For example, when it comes to paying taxes or receiving tax refunds, it's easier if you can do it through the domestic bank system rather than SEPA or SWIFT.

I'd recommend using something like Tide, TransferWise, Revolut, Monzo, and Monese which provides local UK bank details. I'm not sure how strict each one is about residence of directors/shareholders.