Hello,
This forum has helped me a lot over the past couple of years..thanks to all veterans out here !
Now, I'm in a big fix and just cannot find any answer anywhere, have spoken with multiple accountants - but many are clueless.
I have a UK based Limited Company and have been working for a client for the past two years in the UK. The client now wants me to go abroad - to India..for more than a year. They are also asking me to set up a limited company in India and then Invoice them via that company. And also to start paying local taxes in that country.
This looked fine for a start, until I noticed it's a pain to open a company there for a foreigner, and taxes are hugee! both personal tax and corporation tax.
For my personal taxes - I think I have found that I need to do P85 and stop paying UK taxes. Though I will have some income in the UK (Interest from banks, possible rental income). Don't know how to deal with that..
For company taxes,
I have been suggested to actually open a company in a nearby friendly jurisdiction, like Singapore or Dubai, and then invoice the client from there. The Singapore company would pay taxes in Singapore, and have me as an employee working out of India. I would pay personal tax in India then. Tax wise, this works good as I saw that both Singapore and Dubai have lower taxes. But this is feasible/ a good practice? I could not find much documentation online about it. Also, my client's finance team is in a fix, and are unable to decide if they could start paying my Singapore company. They are very sceptical and would almost say NO, but are unable to explain any reason, or recommend alternative.
The other alternative doing round in my head is that I keep invoice the client using my UK company, while inturn become an offshore employee of the firm. Will that even work - considering as a director of this UK company, I'm telling HMRC that I'm not going to be in the UK anymore..
My last option I think could be that I open a Singapore company that contracts with my UK firm, and the UK firm continues to charge my client. I would then be an employee of the Singapore firm. But this would be just too complicated I think, and taxes - god save me if I have to do it at UK, Singapore and India..
Please can someone advise on what could be a possible arrangement.
This forum has helped me a lot over the past couple of years..thanks to all veterans out here !
Now, I'm in a big fix and just cannot find any answer anywhere, have spoken with multiple accountants - but many are clueless.
I have a UK based Limited Company and have been working for a client for the past two years in the UK. The client now wants me to go abroad - to India..for more than a year. They are also asking me to set up a limited company in India and then Invoice them via that company. And also to start paying local taxes in that country.
This looked fine for a start, until I noticed it's a pain to open a company there for a foreigner, and taxes are hugee! both personal tax and corporation tax.
For my personal taxes - I think I have found that I need to do P85 and stop paying UK taxes. Though I will have some income in the UK (Interest from banks, possible rental income). Don't know how to deal with that..
For company taxes,
I have been suggested to actually open a company in a nearby friendly jurisdiction, like Singapore or Dubai, and then invoice the client from there. The Singapore company would pay taxes in Singapore, and have me as an employee working out of India. I would pay personal tax in India then. Tax wise, this works good as I saw that both Singapore and Dubai have lower taxes. But this is feasible/ a good practice? I could not find much documentation online about it. Also, my client's finance team is in a fix, and are unable to decide if they could start paying my Singapore company. They are very sceptical and would almost say NO, but are unable to explain any reason, or recommend alternative.
The other alternative doing round in my head is that I keep invoice the client using my UK company, while inturn become an offshore employee of the firm. Will that even work - considering as a director of this UK company, I'm telling HMRC that I'm not going to be in the UK anymore..
My last option I think could be that I open a Singapore company that contracts with my UK firm, and the UK firm continues to charge my client. I would then be an employee of the Singapore firm. But this would be just too complicated I think, and taxes - god save me if I have to do it at UK, Singapore and India..
Please can someone advise on what could be a possible arrangement.
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