Drawing dividends from UK LTD while working& living abroad Drawing dividends from UK LTD while working& living abroad - Page 3
Page 3 of 3 FirstFirst 123
Posts 21 to 30 of 30
  1. #21

    Should post faster

    skysies's Avatar
    Join Date
    Dec 2012
    Posts
    145

    Default

    Quote Originally Posted by jamesbrown View Post
    Your example is completely ignorant because it talks about salary (not part of the anti-avoidance legislation, which I linked) and you imply that the dividend is taken while you are resident in the UK
    Well I mentioned, and also the OP, that taking a salary of 12.5K is a way to extract a nice sum of money from your company...tax-free. So it be with the dividends. I can live without drawing any dividends while temporary non-resident.

    As long as I can pay myself the 12.5K salary and pay no tax on it, it's all good!

  2. #22

    Should post faster


    Join Date
    Apr 2012
    Posts
    156

    Default

    Quote Originally Posted by skysies View Post
    Well I mentioned, and also the OP, that taking a salary of 12.5K is a way to extract a nice sum of money from your company...tax-free. So it be with the dividends. I can live without drawing any dividends while temporary non-resident.

    As long as I can pay myself the 12.5K salary and pay no tax on it, it's all good!
    But you'll be tax resident in another country. UK rules are irrelevant, and only relevant if you come back within 5 years, as has been explained. For example, Italy would tax you 0.5% on any cash you have your UK bank accounts (including the business account). You need lots of advice by the sound of it.

  3. #23

    Default

    Quote Originally Posted by skysies View Post
    Well I mentioned, and also the OP, that taking a salary of 12.5K is a way to extract a nice sum of money from your company...tax-free. So it be with the dividends. I can live without drawing any dividends while temporary non-resident.

    As long as I can pay myself the 12.5K salary and pay no tax on it, it's all good!
    You have it all worked out then! Obviously, this is why you're posting here in a clueless fashion and ignoring accurate advice as "hearsay". You're the classic poster that has decided the outcome they want and doesn't actually want the truth. What could possibly go wrong?

  4. #24

    Should post faster

    skysies's Avatar
    Join Date
    Dec 2012
    Posts
    145

    Default

    Quote Originally Posted by zerosum View Post
    If it's for two years, and you're working through a local ltd in Europe, why not liquidate your current company and benefit from ER? You should be able to open a new one after two years.
    To answer your question, if I use the MVL option and liquidate my LTD, I will be able to extract my profits at 10%, plus there will be hefty fees for the whole procedure.

    On the other hand, if I pay myself the £12,500 annual salary while working abroad, this amount will be below the threshold and I would not need to pay any tax on it.

  5. #25

    Should post faster


    Join Date
    Apr 2012
    Posts
    156

    Default

    Quote Originally Posted by skysies View Post
    To answer your question, if I use the MVL option and liquidate my LTD, I will be able to extract my profits at 10%, plus there will be hefty fees for the whole procedure.

    On the other hand, if I pay myself the £12,500 annual salary while working abroad, this amount will be below the threshold and I would not need to pay any tax on it.
    So your plan is to pay no tax in the country you’re working in, or to hope that they magically accept what the UK deems to be the tax free allowance? Does this genius scheme include filing a tax return in the destination country and do you plan to declare the holdings in your business bank account? Did you speak to an accountant in the target country?


    Sent from my iPhone using Contractor UK Forum

  6. #26

    Contractor Among Contractors


    Join Date
    Jul 2019
    Posts
    1,377

    Default

    Quote Originally Posted by skysies View Post

    On the other hand, if I pay myself the £12,500 annual salary while working abroad, this amount will be below the threshold and I would not need to pay any tax on it.
    Have you actually read and understood the replies you've received on this point?

    Or are you waiting till someone tells you what you want to hear, and then you can blame "some random on the internet" when things go wrong in a few years.

  7. #27

    More time posting than coding


    Join Date
    Jul 2018
    Posts
    276

    Default

    Quote Originally Posted by skysies View Post
    To answer your question, if I use the MVL option and liquidate my LTD, I will be able to extract my profits at 10%, plus there will be hefty fees for the whole procedure.

    On the other hand, if I pay myself the £12,500 annual salary while working abroad, this amount will be below the threshold and I would not need to pay any tax on it.
    You'll most likely be double taxed in both countries, ie. 0% tax in the UK as the amount is below the threshold but the £12.5k will get converted to whatever currency it is in the country where you stay, whatever local 0% tax threshold will be deducted and you will have tax to pay on whatever is left.

  8. #28

    Respect my authoritah!

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    23,502

    Default

    Quote Originally Posted by skysies View Post
    On the other hand, if I pay myself the £12,500 annual salary while working abroad, this amount will be below the threshold and I would not need to pay any tax on it.
    Good luck with that. Most countries have laws that if you're resident in that country, they tax you on worldwide income.
    Down with racism. Long live miscegenation!

  9. #29

    Still gathering requirements...


    Join Date
    Sep 2020
    Posts
    95

    Default

    Quote Originally Posted by NotAllThere View Post
    Good luck with that. Most countries have laws that if you're resident in that country, they tax you on worldwide income.


    Would it be more accurate to say that the OP "no tax to pay to UK HMRC ...."

    Thats how I see it

  10. #30

    Should post faster


    Join Date
    Apr 2012
    Posts
    156

    Default

    Quote Originally Posted by NotAllThere View Post
    Good luck with that. Most countries have laws that if you're resident in that country, they tax you on worldwide income.
    And also, many countries simply won't recognise the arrangement that you get to decide what salary to set, but generate far more as a one-man band and keep most of it stashed away in the company account. Nor will they look kindly on you running your UK LTD entirely from abroad (CFC).

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •