Family member as additional director Family member as additional director - Page 3
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  1. #21

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    I am director and shareholder and outside the Uk

    The ltd also employs one person who manages the company and is basically the contact person (there are some rental income that are collected and managed but that’s a different story)

    Despite me being non tax resident in the Uk I continue to be director and shareholder of the ltd with no foreign tax implications and the ltd is registered in the U.K. and subject to Uk tax implications

    I think zero sum you are thinking about this too hard. The company can continue to be operated under Uk tax law wherever you are. It is only income which you take out personally which is subject to local non Uk tax (and of course Uk tax) consequences

    So the answer to your question is no implications for employing family member provided they do something useful and real. Accountant is fine with this and even suggested if

  2. #22

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    Quote Originally Posted by NowPermOutsideUK View Post
    I think zero sum you are thinking about this too hard. The company can continue to be operated under Uk tax law wherever you are. It is only income which you take out personally which is subject to local non Uk tax (and of course Uk tax) consequences
    This seems like common sense, and is what most contractor accountants (usually not cross-border experts) will tell you -- until you consider treaty non-residence. E.g.
    INTM120210 - International Manual - HMRC internal manual - GOV.UK

  3. #23

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    I see only three supplementary concerns:

    1. Liability. Ethically, you should compensate the new director something for the risk they are taking. I would argue that if the new director is not in employment the compensation should be high enough to give basic state pension credit.

    2. Competence. The new director might mess things up on accounts, reporting, etc., and you end up with lots of problems.

    3. Business ramifications re: agents, etc, as mentioned previously.

    Re: tax concerns, I'd consider it very unlikely that HMRC would challenge this for the reasons given -- it is to their advantage for your company to remain tax resident here.

    I'd also consider it very unlikely that another tax authority would challenge this because they are unlikely to have significant enough information to justify a challenge.

    IANAA, IANAL, IANA HMRC goon

  4. #24

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    Quote Originally Posted by zerosum View Post
    Nice try, but again, this is paid advice from an international tax specialist with experience of winning cases.

    He advised that I should have an additional director in the UK, and ensure that all management and control occurs in the UK, including flying in for board meetings, and that recent cases have been won on this.

    He did not advise on all the ins and outs and implications of hiring such directors.

    Back at you.
    Their is a who sub-form for people who took international tax specialist advise might be worth having a look:

    https://www.contractoruk.com/forums/...eme-enquiries/
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  5. #25

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    Quote Originally Posted by BlueSharp View Post
    Their is a who sub-form for people who took international tax specialist advise might be worth having a look:

    https://www.contractoruk.com/forums/...eme-enquiries/
    Doesn't this rather ignore the fact that the effect of the advice is to pay HMRC more tax than would otherwise be the case? Issues are more likely to come from abroad if anything.

  6. #26

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    My concern would be a fundamental one - if you are expecting to get work from agents how will that work come April when a lot of things will be inside IR35?
    merely at clientco for the entertainment

  7. #27

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    Quote Originally Posted by eek View Post
    My concern would be a fundamental one - if you are expecting to get work from agents how will that work come April when a lot of things will be inside IR35?
    It's a reasonable concern.

    I'd say it's a trade-off. For those roles which are deemed outside IR35, the fact that I am abroad bolsters the case.

    It will be easier to work and trade in Europe (i.e. with an AbroadCo). Over the years I'd say my contracts were about 30% from this quarter so it might be necessary to expand that.

    Overall, there seems more optionality in going this route and being protected by the Withdrawal Agreement and then changing my mind if necessary and moving back, compared with the many hoops one has to jump through to get residency and a work permit as a third country national (verging on the impossible in many cases). Brexit incinerated the good options, it's a choice of which kind of sh*t to eat at this point.

  8. #28

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    Quote Originally Posted by zerosum View Post
    It's a reasonable concern.

    I'd say it's a trade-off. For those roles which are deemed outside IR35, the fact that I am abroad bolsters the case.

    It will be easier to work and trade in Europe (i.e. with an AbroadCo). Over the years I'd say my contracts were about 30% from this quarter so it might be necessary to expand that.

    Overall, there seems more optionality in going this route and being protected by the Withdrawal Agreement and then changing my mind if necessary and moving back, compared with the many hoops one has to jump through to get residency and a work permit as a third country national (verging on the impossible in many cases). Brexit incinerated the good options, it's a choice of which kind of sh*t to eat at this point.


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  9. #29

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    Quote Originally Posted by Lance View Post


    you are joking? Aren't you?
    Nope. If you're referring to the internal market bill it doesn't affect citizens' rights.

    Citizens' rights feel reasonably secure on the basis that it would be mutually assured destruction.
    Last edited by zerosum; 19th November 2020 at 10:43.

  10. #30

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    Quote Originally Posted by WordIsBond View Post
    2. Competence. The new director might mess things up on accounts, reporting, etc., and you end up with lots of problems.
    Presumably this risk can be mitigated by having them do the bare minimum possible, and the accountant taking most of the slack?

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