On this brief information, Speedy Formations’ firm formation consultants cowl 4 major concerns for working a UK enterprise from overseas. Additionally they reply widespread questions non-resident administrators usually have, corresponding to tips on how to keep compliant.
Whether or not you’re beginning out or already working a UK restricted firm, transferring overseas is an thrilling alternative. With an increase in hybrid and remote working, dwelling in a foreign country whereas managing your UK enterprise is now totally inside attain.
Can I be a director and run my UK enterprise from overseas?
Excellent news: you may run your UK enterprise from exterior the UK – be it in Spain, Dubai or past. Nonetheless, as a UK firm director dwelling abroad, you need to nonetheless adhere to those guidelines:
- Pay company tax on all firm income
- File annual affirmation statements to Corporations Home, plus annual accounts on the finish of the monetary yr
- Submit your organization tax return to HMRC each 12 months
You’ll additionally have to submit a Self Evaluation tax return if you happen to obtain any earnings aside from a director’s wage.
What’s extra, you’ll want to satisfy obligations, corresponding to having a registered workplace tackle within the UK, opening a enterprise checking account in your nation of residence, and understanding which taxes to pay.
In the event you’re dwelling overseas and wish to arrange a UK enterprise, registering a restricted firm is comparatively simple with the help of a UK firm formation agent. Speedy Formations provides non-residents packages appropriate for non-UK residents from most nations. These embrace necessities, corresponding to a London registered workplace tackle and enterprise checking account referrals.
Step 1: Present a registered workplace tackle
You’ll want a registered workplace tackle and applicable e-mail tackle to arrange a UK restricted firm. The registered workplace should be a bodily tackle within the UK and meet all regulatory necessities. Failure to conform might lead to your organization being faraway from the Corporations Home register. Whereas the registered workplace tackle is publicly out there, your e-mail tackle gained’t seem on the general public register.
Step 2: Open a enterprise checking account
Having a enterprise checking account within the UK isn’t a authorized requirement – you may open one in your nation of residence. Nonetheless, many non-UK resident administrators favor to have one within the UK, because it helps with managing your UK firm’s funds. To take action, you may:
- Open an account with a UK financial institution providing account companies to non-UK residents
- Legalise your organization paperwork to be used in your house nation
The selection is yours, however an organization formation agent will help simplify the method. For instance, Speedy Formations companions with Sensible (previously TransferWise) to offer Sensible Enterprise Accounts, providing entry to account particulars in over 9 currencies and extra.
Step 3: Perceive the enterprise taxes you should pay
Serious about working a UK enterprise from overseas? Understanding which taxes to pay is essential and might be advanced even for UK-resident administrators.
For enterprise tax, you’ll pay the identical company tax fee on all income and chargeable beneficial properties from the UK and overseas, no matter the place you reside.
Your UK tax residency standing determines what you pay for private tax. Your UK residential standing normally depends upon the variety of days spent within the UK in the course of the tax yr (sixth April in a single yr to fifth April the next yr). For sole merchants, there’s no distinction between you and your UK enterprise. You’ll have to file a Self Evaluation tax return, together with your residency figuring out if you happen to’re taxed on UK earnings solely or worldwide earnings.
This may have vital implications, so we strongly suggest consulting an accountant with expertise in non-UK resident tax matters.
Private tax implications for UK residents
You’ll solely be classed as a UK resident if you happen to meet no less than one of many computerized UK exams:
- You spend 183 days or extra within the UK in the course of the tax yr
- Your solely house is within the UK, and also you spend no less than 30 days there within the tax yr
- You’re employed within the UK full-time for any 365-day interval
Alternatively, you meet the adequate ties take a look at, otherwise you don’t meet any of the automated abroad exams.
For all above circumstances, you need to pay earnings tax in your worldwide earnings.
Private tax implications for non-UK residents
In the event you spend fewer than 183 days within the UK throughout a tax yr, you’re thought of a non-resident and solely pay tax on earnings from contained in the UK.
Non-resident administrators (NRDs) dwelling overseas for 183 days or extra in a tax yr should pay private tax on any UK earnings – even for minimal visits, corresponding to one assembly. Your nation of residence might also tax your UK earnings, however you could possibly declare tax aid if it has a ‘double taxation settlement’ with the UK.
NRDs don’t pay UK tax on dividend earnings until ‘split-year therapy’ applies. Nonetheless, UK company tax is deducted from firm income earlier than dividends are distributed. Dividend earnings should nonetheless be reported on a Self Evaluation tax return if required, and Nationwide Insurance coverage contributions might apply to UK earnings.
Step 4: Contemplate bills when travelling to the UK
Earlier than establishing or working a UK enterprise from overseas, think about journey prices to the UK. Search specialist recommendation relating to on whether or not journey and lodging bills are taxable or exempt. NRDs travelling to the UK for enterprise should report any enterprise journey and related earnings to keep away from monetary or reputational dangers.
Keep in mind, utilizing a registered office address service may provide help to keep away from enterprise journeys wanted for administrative causes, corresponding to gathering your organization put up.
Non-resident administrators: FAQ
Establishing a UK enterprise from overseas or working it abroad is thrilling however could also be daunting at first. To assist ease the method, check out the solutions to a few of the commonest questions non-resident administrators ask.
Does FSCS cowl non-UK residents?
The Monetary Providers Compensation Scheme protects clients by paying compensation when monetary companies corporations fail. It covers non-UK residents and can shield as much as £85,000 in whole throughout all accounts you maintain. This implies you may handle your UK enterprise overseas and relaxation assured that you just gained’t lose all of your financial savings in case your financial institution or constructing society goes bust. Nonetheless, for it to use, the financial institution or constructing society should be UK-authorised.
keep compliant when working a UK firm from abroad
HMRC can simply determine compliance dangers for NRDs by reviewing short-term enterprise guests and cross-referencing Corporations Home information with PAYE Actual Time Info (RTI) submissions, which embrace info despatched to HMRC about NICs, earnings tax and extra.
Though compliance might be tougher for NRDs, failing to satisfy UK obligations or function PAYE or NIC the place wanted can lead to monetary penalties and reputational harm.
Happily, detailed steering is on the market from the consultants at Speedy Formations.
liquidate a UK restricted firm
You’ll be able to liquidate or ‘wind up’ your UK enterprise from abroad. Your organization will cease doing enterprise and using folks, and it will likely be faraway from the businesses register at Corporations Home.
The foundations are the identical for all UK firm administrators: adjust to UK insolvency laws and search recommendation from a licensed insolvency practitioner.
Fortunately, you can also make telephone calls, ship paperwork electronically, and have digital conferences together with your licensed insolvency practitioner to keep away from travelling to the UK.
Efficiently run your UK enterprise from overseas
Transferring overseas is an thrilling prospect, however preparation is essential. Earlier than you embark on this new chapter, guarantee you’ve got a UK registered workplace tackle, an acceptable enterprise checking account, and a strong understanding of your tax obligations. Loads of sources can be found to information you, together with skilled recommendation from firm formation brokers.
Attain out to the main workforce of consultants at Rapid Formations and see the way it’s simpler than ever to run your UK enterprise from overseas.