Contracting, Ltd Co. & working abroad

[Churchy000]

Hi There,

I'm a newbie here and a bit green in all things tax.
I plan to set up a Ltd company and do contracting work, paying myself a low salary and high dividend.

If I were to operate in the UK then I suspect I would work through an agency. As such they would pay my Ltd company. I understand that I would be liable for income tax on the salary I pay myself (above my personal allowance) and then would have to pay corporation tax on the dividend I pay myself.

Now, if I were to then work abroad I believe it gets a lot more complex. But what are my tax liabilities if I work abroad on short term contracts (less than 12mths) but am still paid by the UK contracting agency? I think that the situation is still the same...as I'm being paid by a UK agency, not the company abroad where I'm actually working?

Many thanks for your help.

[RMC]

It very much depends on where you are going. For example, British soldiers “working” in Afghanistan pay tax and NIC only in the UK, whereas an Afghan cleaner found working in the UK through an Afghan agency or company would be forcibly removed, with employer facing unlimited fine and/or a prison sentence of up to 2 years.