UK UK-LTD Company paying owner which is tax-resident abroad

[vorrin]

Hello!

I'm in a bit of a pickle, and unsure where to turn for advice.
I'm the owner of a one-man LTD company in the UK.
Due to the whole covid thing, I've ended up moving back to Italy, and as such, I'm now a tax resident over here.
I would usually pay myself by a low PAYE wage and dividends.
Being in Italy would complicate that flow quite heavily, and make it less advantageous.
Can I be hired by my own company, rather than on PAYE, as a foreign contractor?
And if so, would I have to pay taxes to the UK on the income I make, and pay taxes for in Italy, doing so?

Thank you in advance for any answer!

 

[hirschcogmail.com]

Hi

If you are resident in Italy and have income in UK you pay UK tax. However any income from Italy you are exempt from UK tax.
The company is a legal separate entity from you and there is no reason why you cannot act as a subcontractor in your name on this basis.
It is better to make sure you have a legal contract in place.

Kind regards

 

[vorrin]

Hi

If you are resident in Italy and have income in UK you pay UK tax. However any income from Italy you are exempt from UK tax.
The company is a legal separate entity from you and there is no reason why you cannot act as a subcontractor in your name on this basis.
It is better to make sure you have a legal contract in place.

Kind regards

Thanks a lot for your answer!

If I may double-check I understood you correctly: being a programmer, I assume that my income is perceived as received wherever I do carry out the work, which in this case, would be Italy, as I sit in my room here, and program for people in another nation (Poland).
My company is the one that gets paid, and it is in UK, but as a subcontractor working for it, I live and work in Italy and should be paid there.
Thus I assume that it is correct for me to do that, and that not to register as director compensation (which as far as I understand is usually considered UK income)?

Thanks again!