Contractors' Questions: Can my 'Ltd' supply the client at home & abroad?
Contractor’s Question: Is it possible for a UK-based limited company to work three weeks in the UK and one week in France, for the same end user?
Expert’s Answer: Yes, it is possible for a UK-based company to work in such a manner, as long as the majority of the work is carried out in the UK and that the company is not otherwise deemed to have a presence in France.
If we apply this scenario to the case of a one-man UK company, the invoicing and reporting will continue to be based in the UK, and UK deductions will be paid as long as the neither the company nor its director are resident in France (so you would return to the UK on weekends, and have no habitual abode in France, for example).
If at any point in time the balance starts to shift towards more time being worked in France than in the UK, measures should be taken to ensure that local liabilities due to the French tax authority are being taken care of.
The expert was Matt Walters, of international tax planning specialists Capital Consulting.