Question UK LTD with high tax residence (warehouse in UK)

[Lucas32]

Hi Guys

After checking practically all options for my eCommerce business, i think UK LTD is the best one, easy, cheaper, stable, and reputable but i have a question

Im living in a hight tax country (29%) with tax treaties with the UK, so basically i will not be able to opt for the UK 19% right ? and must pay the 29% in my residence country

BUT what happen if i decide to stock my goods in UK warehouse (3PL or similar) will this make the company pay tax in the UK ?

Im from North african country but with France permanent Residence and personal account in EU and many countries (i have a personal Wise account long time ago ), and a good startups track record (EU - Asia) do i will have a problem to open a business account for my UK LTD ?

How about PSP like Stripe etc ?

** Worldwide Customers, UK included


Thank you

 

[Martin Everson]

After checking practically all options for my eCommerce business, i think UK LTD is the best one, easy, cheaper, stable, and reputable but i have a question

I would not characterize the UK as stable right now with 3 Prime Ministers in 1 year, Brexit causing problems, cost of living crisis and a mini budget that sent the UK's cost of borrowing through the roof and caused turmoil in gilt market to name a few. Unless your comparing UK to a country in North Africa that suffered an Arab Spring then fair enough its stable in that case.

Im living in a hight tax country (29%) with tax treaties with the UK, so basically i will not be able to opt for the UK 19% right ? and must pay the 29% in my residence country

UK corporate tax will increase to 25% from April 2023 depending on your profits. UK is not so attractive anymore if you have decent profits, plus its outside EU now so EU VAT registration to think about for your EU customers etc.

https://fortuous.co.uk/2022/10/18/new-uk-corporation-tax-rates-from-april-2023/

BUT what happen if i decide to stock my goods in UK warehouse (3PL or similar) will this make the company pay tax in the UK ?

If I understand you right you will be doing business under a UK company so I don't get this point.

Im from North african country but with France permanent Residence and personal account in EU and many countries (i have a personal Wise account long time ago ), and a good startups track record (EU - Asia) do i will have a problem to open a business account for my UK LTD ?

An account in the UK with a bank as a non-resident then yes. With a UK EMI then no.

How about PSP like Stripe etc ?

Can't answer this one as not kept up with their policies.

 

[Lucas32]

I would not characterize the UK as stable right now with 3 Prime Ministers in 1 year, Brexit causing problems, cost of living crisis and a mini budget that sent the UK's cost of borrowing through the roof and caused turmoil in gilt market to name a few. Unless your comparing UK to a country in North Africa that suffered an Arab Spring then fair enough its stable in that case.



UK corporate tax will increase to 25% from April 2023 depending on your profits. UK is not so attractive anymore if you have decent profits, plus its outside EU now so EU VAT registration to think about for your EU customers etc.

https://fortuous.co.uk/2022/10/18/new-uk-corporation-tax-rates-from-april-2023/


If I understand you right you will be doing business under a UK company so I don't get this point.



An account in the UK with a bank as a non-resident then yes. With a UK EMI then no.



Can't answer this one as not kept up with their policies.

UK will always be stable, even with 1000 PM's and NO im not comparing it with arabic coutry that suffred an arab spring but for example to Italy with the huge debt and Spain debt and political issues or lets say Argentina with the crazy inflation and the currency devaluation



Anyway thanks for your answer

 

[Martin Everson]

UK will always be stable, even with 1000 PM's and NO im not comparing it with arabic coutry that suffred an arab spring but for example to Italy with the huge debt and Spain debt and political issues or lets say Argentina with the crazy inflation and the currency devaluation

If you set your bar low by comparing UK to those countries you mentioned then fair enough.

Anyway thanks for your answer

Your welcome .

 

[fshore]

Look at the tax treaty UK France, you'll probably find that having a warehouse in a country doesn't make it tax resident. So it will be tax resident where managed from (France), also called treaty non resident in the UK.