Contracting for UK company whilst overseas..advice please?

[jander]

Hello everyone, first post, please excuse the newbishness.

For family reasons, I need to be out of the UK (been living here for the past 19 years) for the next 3 years, living in Greece. My current employer would like to retain my services whilst I'm there, in the form of contracting out for them. The following questions arise:

1)If I'm not physically resident here, is it ok to have formed an LTD before I leave?
2)Tax-wise, what are my obligations, if the LTD is formed in the UK? I tried the residency Test on HMRC but it keeps crashing
3)Am I liable for income earned in the UK to be taxed in Greece (difficult question, I am aware)

and finally..any specialist accountant you would recommend?

Thank you!

[WTFH]

Welcome.


When you say you will not be resident, do you mean you will be living and working in Greece? Or is it living in Greece and working in the UK? (or something else?)


You mentioned your "current employer", so are you currently a contractor or a permie?

[jander]

Welcome.


When you say you will not be resident, do you mean you will be living and working in Greece? Or is it living in Greece and working in the UK? (or something else?)


You mentioned your "current employer", so are you currently a contractor or a permie?

Thank you

I will be living and working (from home) in Greece, for a UK company, for which I'm currently a permie, but will switch to contracting for aforementioned period.

[jander]

Just to add some information, the income received here in the UK, to the best of my knowledge, can be taxed in Greece. However, there's an agreement between the UK and GR with respects to dual taxation. What it stipulates, in a nutshell, is that any foreign income earned and taxed in the UK, whilst in Greek soil, is taxable in Greece, minus the tax percentage paid here, e.g

(all amounts are examples, not real life values)

UK Income: equivalent of 10000 Euros in sterling

Greek tax would be 1500 euros

UK tax paid: 1000 euros

Then Greek tax would be 1500-1000=500

[jander]

Welcome.


When you say you will not be resident, do you mean you will be living and working in Greece? Or is it living in Greece and working in the UK? (or something else?)


You mentioned your "current employer", so are you currently a contractor or a permie?

Thank you

Yes, I will be living and working in Greece, for a UK company that (if at all possible) will be paying me via my LTD. I'm currently a permie with them.

[scooterscot]

Hello everyone, first post, please excuse the newbishness.

For family reasons, I need to be out of the UK (been living here for the past 19 years) for the next 3 years, living in Greece. My current employer would like to retain my services whilst I'm there, in the form of contracting out for them. The following questions arise:


Thank you!

1)If I'm not physically resident here, is it ok to have formed an LTD before I leave?

Yes. Nothing stopping you. Your company will still have to pay tax in the UK based upon its turnover just like another company regardless of where you choose to call home.


2)Tax-wise, what are my obligations, if the LTD is formed in the UK? I tried the residency Test on HMRC but it keeps crashing


Your tax obligations and your company's obligations are separate. You company will pay tax based on its turnover less expenses as normal.


3)Am I liable for income earned in the UK to be taxed in Greece (difficult question, I am aware)

More than likely if you're the only director. Becomes more difficult for the authorities to claim a slice in the turnover if another director exists in the UK. But is it really worth the hassle? A fat no in my opinion.


and finally..any specialist accountant you would recommend?


Find a local accountant in Greece in the expat forums. That would be my first stop.

Living in Greece : A Guide to Moving to Greece as an Expat : Expat Info Desk

[northernladuk]

Does the OP need to be concerned by IR35. Normally his arrangement would put him inside IR35 being a fridaybto Monday contractor.

[jander]

Does the OP need to be concerned by IR35. Normally his arrangement would put him inside IR35 being a fridaybto Monday contractor.

And then there's that too...

[jander]

1)If I'm not physically resident here, is it ok to have formed an LTD before I leave?

Yes. Nothing stopping you. Your company will still have to pay tax in the UK based upon its turnover just like another company regardless of where you choose to call home.


2)Tax-wise, what are my obligations, if the LTD is formed in the UK? I tried the residency Test on HMRC but it keeps crashing


Your tax obligations and your company's obligations are separate. You company will pay tax based on its turnover less expenses as normal.


3)Am I liable for income earned in the UK to be taxed in Greece (difficult question, I am aware)

More than likely if you're the only director. Becomes more difficult for the authorities to claim a slice in the turnover if another director exists in the UK. But is it really worth the hassle? A fat no in my opinion.

Much obliged..given the scope of falling within IR35 and tax on turnover plus my tax obligations I'm now wondering whether an umbrella is a more sustainable solution. I'm trying to have numbers based on what's going to be my monthly net. I've been trying to find a calculator that would give me that, based on corporation + personal tax (just for the UK) but i've drawn a blank. Perhaps something that would be better addressed to UK based accountant?

[Boo]

For family reasons, I need to be out of the UK (been living here for the past 19 years) for the next 3 years, living in Greece. My current employer would like to retain my services whilst I'm there, in the form of contracting out for them. The following questions arise:

1)If I'm not physically resident here, is it ok to have formed an LTD before I leave?

Don't know the law on that but AFAIK you will need a UK address for HMRC to send you tax returns etc. My accoutant is registered with HMRC as acreddited to MyCo but I still get stuff from them at my home address so you will need to ask a UK accountant for the skinny on this.

2)Tax-wise, what are my obligations, if the LTD is formed in the UK? I tried the residency Test on HMRC but it keeps crashing

Your UK Co. will be taxed in the UK as stated in posts above above. Your income from YourCo will be taxed in any country where you are resident for tax purposes (see below) under the terms of the Double Taxation Treaty between Greece and the UK. Generally these treaties have the effect that the total tax owed is the higher of the rates applied by the two countries and both countries get a share. If you stay in the UK more than 183 days in any year you will be tax resident here, AFAIK the same is true for Greece.

From what you say I think your company income will be taxed (corporation tax, VAT, etc) under the UK law but your personal income from the company (dividends, wages etc) will be taxed under Greek law, this is predicated upon you not spending any appreciable time in the UK while you perform the work.

3)Am I liable for income earned in the UK to be taxed in Greece (difficult question, I am aware)

Usually your worldwide income is taxed in any country in which you are tax resident. This is generally the country where you live and work so if you spend literally zero time in the UK during the 3 years then you should not need to pay any UK tax on income earned during those 3 years.

and finally..any specialist accountant you would recommend?

You will most likely need both a UK and a Greek accountant and I would try to ensure the Greek accountant has good enough English that comms between him/her and your UK accountant are good because they will need to confer.

3)Am I liable for income earned in the UK to be taxed in Greece (difficult question, I am aware)

and finally..any specialist accountant you would recommend?

I am at a loss to understand why you want to undertake this business via a UK company ? Is there an agency in the loop ? If not then the simpleset thing would be to start a Greek Company and run everything from Greece, then you will entirely fall within Greek law.

I say "the simplest thing" because there is another alternative which is not legal but is equally simple and that is to start a UK Co. and just not tell the Greek authorities anything about it. You may end up in gaol if you do that but you will have the satisfaction of only paying UK taxes (lowest in Europe) up to the point they catch you.

Hth,

Boo