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Where Taxpayers and Advisers Meet

Expat Business and Personal Tax Question.

MrJoeBloggs
Posts:1
Joined:Thu Feb 13, 2020 1:01 pm
Expat Business and Personal Tax Question.

Postby MrJoeBloggs » Thu Feb 13, 2020 1:04 pm

Hi,

(Sorry could not find a more appropriate thread/channel to post this in.)

I am a British citizen and an IT Contractor/freelances working remotely (mostly from UK currently) for a Gibraltar based client via my limited company (will call it IT UK Ltd going forward). However, in April 2020 I am looking to move to India at least for a year and continue working from there (home) for the same client. I have checked on HMRC SRT, I will be a non UK tax resident from 2020, therefore, it does not make much sense for me to pay UK tax for my IT UK Ltd company. Hence, I am considering an offshore setup for that, let’s call it IT Offshore Ltd, and pay all it’s due taxes back there.

However, I also have a real estate business in the UK, all (i.e. nothing on personal names) via another limited company (let’s call it Property UK Ltd) and I usually loan the profits of the IT UK Ltd to Property UK Ltd to buy it’s properties. Thus, I will really need the IT business money in the UK. Hence, I am considering to make IT Offshore Ltd as a subsidiary (child) of IT UK Ltd and remit all its post-tax profits back in the UK.

Questions:

1. Will I still have to pay UK taxes (even differential) on eSoft UK Ltd for any remittances from its child company or will I not need to because, its directors (me and wife) are both non UK tax residents, please?

2. I will still be withdrawing a director’s salary plus dividends either from my Property UK Ltd company to my UK personal bank account (and remit them to India for living), will that at all impact my tax residency status because I will be working mostly from India to pass the HMRC SRT?

3. Does working for a UK based company impact your tax residency eve if you are working full time form your home outside the UK?

Thanks in advance.

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