Family member as additional director Family member as additional director - Page 4
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  1. #31

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by zerosum View Post
    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.

    The WA only applies if you are resident in an EU country by 31st December 2020, i.e. in 42 days.
    If you're not, then the WA doesn't apply.
    I'm perfect, in a very specific and limited way.
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  2. #32

    More time posting than coding


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    Quote Originally Posted by WTFH View Post
    The WA only applies if you are resident in an EU country by 31st December 2020, i.e. in 42 days.
    If you're not, then the WA doesn't apply.
    Correct. Or an EU citizen in the UK, as the whole point is the reciprocity of the arrangement.

  3. #33

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by zerosum View Post
    Correct. Or an EU citizen in the UK, as the whole point is the reciprocity of the arrangement.

    Correct. It's about where you are resident. No freedom of movement between the two.
    I'm perfect, in a very specific and limited way.
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  4. #34

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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?
    My current client's stance before April 2020 was: No UK LTDs permitted if any worker is UK tax resident.
    If the worker is not UK tax resident (lives outside UK) then UK LTD will be permitted (as well as any other EU LTD) and = b2b engagement.

    In contrast any worker employed by their EU LTD, but living in UK will not be permitted (and the EU LTD as well).

    This came from their legal department so I consider it solid.

    RE: director's location: the rules might be very complex, but if the end result is that the proper amount of tax is paid to the HMRC it is highly unlikely HMRC will investigate. With someone living out of UK the most simple case will be total turnover = profit @ 19% tax.
    Last edited by win10; 19th November 2020 at 15:27.

  5. #35

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    Also worth pointing out that dividends from your uk ltd IS TAX FREE if non uk tax resident meaning if you move away rom UK you can declare a dividend with no further UK tax to pay - Of course local tax might charge something but the point is that the Uk does not

    That means as above name "profit - 19% corp tax" is total payable which makes UK low tax place in such an environment
    Last edited by NowPermOutsideUK; 20th November 2020 at 15:18.

  6. #36

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    Quote Originally Posted by NowPermOutsideUK View Post
    Also worth pointing out that dividends from your uk ltd IS TAX FREE if non uk tax resident meaning if you move away rom UK you can declare a dividend with no further UK tax to pay - Of course local tax might charge something but the point is that the Uk does not

    That means as above name "profit - 19% corp tax" is total payable which makes UK low tax place in such an environment
    As long as you don’t try and move back within 5 UK tax years, yes.

  7. #37

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    Quote Originally Posted by NowPermOutsideUK View Post
    Also worth pointing out that dividends from your uk ltd IS TAX FREE if non uk tax resident meaning if you move away rom UK you can declare a dividend with no further UK tax to pay - Of course local tax might charge something but the point is that the Uk does not

    That means as above name "profit - 19% corp tax" is total payable which makes UK low tax place in such an environment
    No necessarily. DTA between the UK and Poland:

    except as provided in sub-paragraph (a) of this paragraph, may also be
    taxed in the Contracting State of which the company paying the dividends
    is a resident and according to the laws of that State, but if the beneficial
    owner of the dividends is a resident of the other Contracting State, the tax
    so charged shall not exceed 10 per cent of the gross amount of the
    dividends.


    And at the moment I really don't know how my dividends should be taxed...is it just tax in my resident country? Or 10% for HMRC also...

  8. #38

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    Quote Originally Posted by ContractorPL View Post
    No necessarily. DTA between the UK and Poland:

    except as provided in sub-paragraph (a) of this paragraph, may also be
    taxed in the Contracting State of which the company paying the dividends
    is a resident and according to the laws of that State, but if the beneficial
    owner of the dividends is a resident of the other Contracting State, the tax
    so charged shall not exceed 10 per cent of the gross amount of the
    dividends.


    And at the moment I really don't know how my dividends should be taxed...is it just tax in my resident country? Or 10% for HMRC also...
    If you are out of Uk non resident there is no dividend tax to pay to hmrc. I think but I’m not sure about the five year rule for divis. It definitely applies to proprietary cgt (the five year rule). However as I will be out of Uk for five years it does not make a difference to me

    You need to pay whatever your local income tax is to the country you are in yes

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