The Worklife Company: "I'm sad to go but its easier in Dubai"

**thunderlizard** · 4 January 2010, 14:49

Is it all about the tax? Maybe it's cheaper to live in Dubai. Definitely sunnier.

**Tarquin Farquhar** · 4 January 2010, 15:16

Originally posted by MPwannadecentincome View Post

Article in todays Mail on Sunday - Financial Mail "The Enterprise Zone" section pages 62 and 63...

I can't find the article online - sorry.

Searching for this company on the web seems to show this is either a one man band or a husband and wife company at the most.

But this confuses me. Other threads on CUK on incorporating a one man band seem to imply that a company located outside of the jurisdiction of where most of the work is performed is still liable for taxes in the country where the work is performed - correct me if I'm wrong but if this is true how does Lynne Copp really believe she is going to escape UK tax?

Maybe she really is going to perform most of the work from Dubai. Even if in practice most of her clients are in the UK, it might still pass. OTOH if the sum total of your "international consulting" is to fly out every Monday to Brussels and park your bum on the same seat all week every week, you are less likely to get away with claiming that you are running a business based elsewhere.

**BlasterBates** · 4 January 2010, 15:48

Well if she turns up in the UK week in week out she's liable for UK tax.

Some people try that on, but if they catch you, you'll pay penalties as well as back tax, on top of any tax paid in Dubai. Basically you're taxed where you do the work. If you work for a company and satisfy tax residency rules, then the company and you for that matter will have to pay UK tax, for that work you are doing.

Any company that employs anyone in the UK has to register in the UK.

Same rules apply just about everywhere. A few UK bods try to tax themsleves in the UK when they really work in Germany and then end up with a huge bill.

**poppy01** · 4 January 2010, 17:21

Originally posted by BlasterBates View Post

Well if she turns up in the UK week in week out she's liable for UK tax.

Some people try that on, but if they catch you, you'll pay penalties as well as back tax, on top of any tax paid in Dubai. Basically you're taxed where you do the work. If you work for a company and satisfy tax residency rules, then the company and you for that matter will have to pay UK tax, for that work you are doing.

Any company that employs anyone in the UK has to register in the UK.

Same rules apply just about everywhere. A few UK bods try to tax themsleves in the UK when they really work in Germany and then end up with a huge bill.

I used to work from home 2 days a week, and 3 days in Germany - where did I 'do the work'.

**BlasterBates** · 4 January 2010, 17:57

Strictly you need to divide it up i.e. you did work in the UK and Germany, and it is complicated, providing separate P&L accounts. For that reason companies on borders don't allow working at home if you live over the border eg Switzerland. If you're working at home though the tax authority would have to get wind of it. It is actually laid out in the DTA. You have to be careful though some contractors working in Germany taxed themselves in the UK and got severely clobbered. The crucial point is do you qualify for tax residency whilst working, if you did a 3 month contract in Germany that most likely wouldn't count but once you're over the limit, whoever employs you (eg your own co.) would be breaking the rules and the tax authority would demand tax and with penalties for running a co. without registering.

**MPwannadecentincome** · 4 January 2010, 21:17

Originally posted by thunderlizard View Post

Is it all about the tax? Maybe it's cheaper to live in Dubai. Definitely sunnier.

Rents may have dropped since the recession started but I don't think it is significantly cheaper to live there, certainly there are minimal taxes to pay out there.

**MPwannadecentincome** · 4 January 2010, 21:18

Originally posted by BlasterBates View Post

Well if she turns up in the UK week in week out she's liable for UK tax.

Some people try that on, but if they catch you, you'll pay penalties as well as back tax, on top of any tax paid in Dubai. Basically you're taxed where you do the work. If you work for a company and satisfy tax residency rules, then the company and you for that matter will have to pay UK tax, for that work you are doing.

Any company that employs anyone in the UK has to register in the UK.

Same rules apply just about everywhere. A few UK bods try to tax themsleves in the UK when they really work in Germany and then end up with a huge bill.

Well its all in the press - so the taxman must be watching closely then!

**Tarquin Farquhar** · 5 January 2010, 11:05

Originally posted by poppy01 View Post

I used to work from home 2 days a week, and 3 days in Germany - where did I 'do the work'.

Both places. It is perfectly possible to be taxable in 2 countries. Neither taxman would have any problem with that.

**smalldog** · 5 January 2010, 11:10

Originally posted by MPwannadecentincome View Post

Rents may have dropped since the recession started but I don't think it is significantly cheaper to live there, certainly there are minimal taxes to pay out there.

which is my entire issue with this country and other similarly complex and expensive tax regimes. Other countries manage to survive without high taxes, and yet we are constantly told without them the whole fabric of society would collapse...I think not, otherwise how do Tax havens build roads, employ emergency services, provide healthcare and schooling....I would hazard a guess that they protect precious resources and dont fritter it away,unlike our government who find any excuse to spend it

The Worklife Company: "I'm sad to go but its easier in Dubai"