UK Corporation Tax for dummies - Non-UK resident

[aliendna51]

Hello!
I've incorporated an LTD in the UK through an agency, because it seems like the laws and generally the corporate environment in the UK is much friendlier towards startups than elsewhere. However, since this is my very first startup, I could use some help figuring things out in order to be perfectly legal.

Corporation Tax
I registered for Corporation Tax online, since the HMRC website said I should do so within 3 months after I've started trading and the process was relatively easy, except for one part that confused me. According to everything I've read so far, trading means any kind of for-profit activity (my company's activities are solely providing services to clients), however, I couldn't finish registering for Corporate Tax unless I included information about taking over another business. I ended up mentioning my already existing company's details as the one that I've acquired, even though it's obviously wrong, but I couldn't finish it otherwise. What did I get wrong? Is trading meant as buying and selling companies? Should I not have registered for Corporation Tax?

Paying myself
As I understand, I can only pay myself as director of the company, either by registering for PAYE and hiring me as an employee, or by paying myself share dividends. From what I've read so far, the second option sounds much easier and less costly. Is there anything I should know as a non-UK resident about that? Would you recommend something else instead?

Expenses covered
I intend to cover my business related personal expenses as company expenses. From what I've read so far, that's legal and only has implications if I buy a company car, which I don't intend to do. I only intend to cover travel related expenses, such as tickets, accommodation and subsistence expenses during my stay for business related trips (including fees for training courses and other business related events I need to attend). The only assets I could try covering as business expenses are perhaps a laptop, mobile phone and office expenses, but apart from that, it's only business trips and events related to skills development. Would I have any trouble justifying those as business expenses? What should I be aware of?

Self-Assessment
In the case of paying myself share dividends, I should file for a personal Self-Assessment according to HMRC. Am I obliged to do that even as a non-UK resident or does that apply only to UK residents? Something related to that, which I should know in order to avoid double taxation?

Thanks a lot in advance!

 

[Becky]

Welcome to the forum

I've incorporated an LTD in the UK through an agency, because it seems like the laws and generally the corporate environment in the UK is much friendlier towards startups than elsewhere.

I'm confused... where are you conducting your business?

 

[aliendna51]

Welcome to the forum
I'm confused... where are you conducting your business?

Thanks!
The company is based in the UK, but the services (training, facilitation and consultancy) will not be limited to clients from the UK. The expected clientèle will be international, but mainly from within the EU.

 

[Becky]

I know you have set up the UK company, but do you have UK employees? Are you concluding contracts in the UK? Are any business activities carried out in the UK? Do you have a UK office?

 

[aliendna51]

No employees whatsoever so far. I'm the only physical person related to the company as its director, but I'm not employed in the company (through PAYE) and my personal address is not in the UK. The company has an office in Manchester provided by the formation agency that helped me to set the company up. Some business activities will be carried out in the UK, but I expect the majority of them to be carried outside of it, but still within the EU

 

[jwmca.com]

Are you an online business?

 

[aliendna51]

No. Some services will be provided online, but the majority will be provided "live", in organized events in (many) different countries.

 

[Becky]

I'm just confused about why you have set up a UK company... it doesn't sound like it's a UK business. However, by registering it in the UK you have legal obligations in the UK (eg taxes and filing), and you are likely to also have obligations abroad depending on whether your operations are considered to be a branch of the UK company (it sounds like they are). If that is the case, you will have to file returns and pay taxes in both the UK and the country where the branch is located, and then claim double taxation relief. If you are paying a higher rate of tax abroad, the relief is restricted, so you wouldn't necessarily benefit from the lower rate of corporation tax in the UK.

It just seems overly complicated and I can't see what there is to be gained...?