Question UK LTD - Non Resident Directors/Shareholders (Banking Options/Taxes)

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kavkazadiga

New member
Hi,

I am running an influencer marketing agency where we connect brands with influencers & vice versa. We deal with brands/influencers from around the world, 99% of the transactions are through bank transfers.

Company Information:
  • 2 Directors & 2 Shareholders (Myself/Brother): Living in a third world middle east country with non-UK nationality
  • Company Type: UK LTD
  • Business Bank: Wise
  • Tax Treaty: Between the UK and my country, there is a tax treaty.
  • Brands/Influencers: From around the world (Mostly EU, US, AU & CA)
  • Banks in my country don't allow foreign companies in opening business account
According to my tax research, I am required to pay the following:
  • UK Corporate tax: 19%
  • VAT: 20% (I need to register if the annual revenue from UK customers exceeds 85k GBP & I only need to charge it to UK clients)
  • Dividend Tax: UK dividend tax
  • Income Tax: Salary of a non-resident director is liable to income tax in the country in which he resides. If this is true, it implies I am not required to pay UK income tax and that I can increase my annual director salary as much as I want as long as it stays within the range of UK directors' average incomes without running into any issues with HMRC. If I can do this, I can increase the company expenses as much as I want & pay almost 0% corporate tax.
  • I am not liable to pay any tax on foreign income I am receiving in the country I am residing in.
If the information I have regarding UK taxes is correct, it means I can operate the business with almost 0% taxes to pay.

It would be appreciated if someone can the questions below:
Q1) Is the above tax information accurate?
Q2) What are the best EMI/Traditional banks for my business & are available to non-resident directors?
Q3) Is there any payment processing service like Stripe that allows inward & outward bank transfers?
Q4) I've heard that I can switch to an LLP instead of an LTD, which would result in zero corporate taxes. The primary issue is that it can be difficult to find a bank that will open an LLP account for you. Is this accurate?
Q5) Is it safe to merely use Wise considering how frequently we deal with bank transfers?
 

marzio

Mentor Group Gold
POEM = Place Of Effective Management so he said exactly the same thing i said in my comment.

He helped you but somehow you perceived he was making fun of you which wasn’t the case.
 

kavkazadiga

New member
Clearly not the attitude to have if you are here looking for help my G
I totally misunderstood what he meant when he stated "POEM rule", thinking he was making fun of how long the post was. When he replied to the thread, I did a google search but didn't find any information about "POEM rule". I apologize for all the members that replied to the thread, I wish I had been more thoughtful.

Which is the country you are living in? Are you sure they won't apply the POEM rule?
I'm sorry for how I behaved; I tried to message you, but it appears that I need to upgrade my subscription.
 
Last edited:

ilpablo

Active Member
I totally misunderstood what he meant when he stated "POEM rule", thinking he was making fun of how long the post was. When he replied to the thread, I did a google search but didn't find any information about "POEM rule". I apologize for all the members that replied to the thread, I wish I had been more thoughtful.


I'm sorry for how I behaved; I tried to message you, but it appears that I need to upgrade my subscription.
I was just trying to help you understand a possible problem you can face.

This is also concerning me regarding my own choices.
 
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