Hi,
I am a British citizen and an IT Contractor/freelances working remotely (mostly from UK currently) for a Gibraltar based client via my limited company (will call it IT UK Ltd going forward). However, in April 2020 I am looking to move to India at least for a year and continue working from there (home) for the same client. I have checked on HMRC SRT, I will be a non UK tax resident from 2020, therefore, it does not make much sense for me to pay UK tax for my IT UK Ltd company. Hence, I am considering an offshore setup for that, let’s call it IT Offshore Ltd, and pay all it’s due taxes back there.
However, I also have a real estate business in the UK, all (i.e. nothing on personal names) via another limited company (let’s call it Property UK Ltd) and I usually loan the profits of the IT UK Ltd to Property UK Ltd to buy it’s properties. Thus, I will really need the IT business money in the UK. Hence, I am considering to make IT Offshore Ltd as a subsidiary (child) of IT UK Ltd and remit all its post-tax profits back in the UK.
Questions:
1. Will I still have to pay UK taxes (even differential) on eSoft UK Ltd for any remittances from its child company or will I not need to because, its directors (me and wife) are both non UK tax residents, please?
2. I will still be withdrawing a director’s salary plus dividends either from my Property UK Ltd company to my UK personal bank account (and remit them to India for living), am I right in assuming that this should not impact my tax residency status because I will be working mostly from India and will be a no-uk tax residence as per the HMRC SRT ?
Thanks,
I am a British citizen and an IT Contractor/freelances working remotely (mostly from UK currently) for a Gibraltar based client via my limited company (will call it IT UK Ltd going forward). However, in April 2020 I am looking to move to India at least for a year and continue working from there (home) for the same client. I have checked on HMRC SRT, I will be a non UK tax resident from 2020, therefore, it does not make much sense for me to pay UK tax for my IT UK Ltd company. Hence, I am considering an offshore setup for that, let’s call it IT Offshore Ltd, and pay all it’s due taxes back there.
However, I also have a real estate business in the UK, all (i.e. nothing on personal names) via another limited company (let’s call it Property UK Ltd) and I usually loan the profits of the IT UK Ltd to Property UK Ltd to buy it’s properties. Thus, I will really need the IT business money in the UK. Hence, I am considering to make IT Offshore Ltd as a subsidiary (child) of IT UK Ltd and remit all its post-tax profits back in the UK.
Questions:
1. Will I still have to pay UK taxes (even differential) on eSoft UK Ltd for any remittances from its child company or will I not need to because, its directors (me and wife) are both non UK tax residents, please?
2. I will still be withdrawing a director’s salary plus dividends either from my Property UK Ltd company to my UK personal bank account (and remit them to India for living), am I right in assuming that this should not impact my tax residency status because I will be working mostly from India and will be a no-uk tax residence as per the HMRC SRT ?
Thanks,
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