Tax Question (uk)

[cotambear]

Hi, I have a question I hope you can help with.

At the moment I work in the UK for nine months, visiting LOS for three. I am interested in starting a tourism company, offering specialist holidays in LOS.

The company would be owned and run in LOS.

My question is; would I be liable for any tax in the UK?

Many thanks in advance if you can help.

[Dragonman]

Hi, I have a question I hope you can help with.

At the moment I work in the UK for nine months, visiting LOS for three. I am interested in starting a tourism company, offering specialist holidays in LOS.

The company would be owned and run in LOS.

My question is; would I be liable for any tax in the UK?

Many thanks in advance if you can help.

As the Company will presumably be thai, it will only pay thai Company Tax.

[Mobi]

Hi, I have a question I hope you can help with.

At the moment I work in the UK for nine months, visiting LOS for three. I am interested in starting a tourism company, offering specialist holidays in LOS.

The company would be owned and run in LOS.

My question is; would I be liable for any tax in the UK?

Many thanks in advance if you can help.

I('m not a tax expert, but I do know a bit. I have a feeling that if you're resident for tax purposes in the Uk then you will be liable to tax on your world wide earnings.

HOWEVER, the magic number is three months. If you ensure that you are not in the Uk for more that 90 days in any tax year (April to April), then you are non- resident for tax purposes in the UK and you will not be liable to pay tax on your overseas earnings.

Whatever advice you receive on this forum, I strongly recommend that you call the inland revenue enquiry line in the UK and put the question to them. I did this years ago, and got some very useful information and advice, and this way you can be sure the advice is correct, and they won't come after you later.

[Dragonman]

Hi, I have a question I hope you can help with.

At the moment I work in the UK for nine months, visiting LOS for three. I am interested in starting a tourism company, offering specialist holidays in LOS.

The company would be owned and run in LOS.

My question is; would I be liable for any tax in the UK?

Many thanks in advance if you can help.

I('m not a tax expert, but I do know a bit. I have a feeling that if you're resident for tax purposes in the Uk then you will be liable to tax on your world wide earnings.

HOWEVER, the magic number is three months. If you ensure that you are not in the Uk for more that 90 days in any tax year (April to April), then you are non- resident for tax purposes in the UK and you will not be liable to pay tax on your overseas earnings.

Whatever advice you receive on this forum, I strongly recommend that you call the inland revenue enquiry line in the UK and put the question to them. I did this years ago, and got some very useful information and advice, and this way you can be sure the advice is correct, and they won't come after you later.

Yes Mobi is correct I have over simplified the matter. Obtain leaflet IR 139 from HM Revenue & Customs. But better still employ a good tax lawyer/accountant as there are ways of getting around the dividends/interest tax liabilities of overseas companies.

[game4shame]

do a search here http://www.hmrc.gov.uk . try 'foreign income' or 'UK resident foreign comany' etc.

you will find everything you need in the site - rules and regulations, HMRC leaflets for download, helpline contact numbers etc.

Obtain leaflet IR 139 from HM Revenue & Customs. But better still employ a good tax lawyer/accountant as there are ways of getting around the dividends/interest tax liabilities of overseas companies.

this is true.

HMRC will advise on the official rulings.......

.....a decent accountant will provide you with the loopholes!!!

Edited April 18, 2006 by game4shame

[kudroz]

Hi, I have a question I hope you can help with.

At the moment I work in the UK for nine months, visiting LOS for three. I am interested in starting a tourism company, offering specialist holidays in LOS.

The company would be owned and run in LOS.

My question is; would I be liable for any tax in the UK?

Many thanks in advance if you can help.

The personal income your earn in the UK is and will still be taxed in the UK.

If you start a company in Thailand, your company will pay taxes in Thailand.

You as an individual, if you receive a salary from your new Thai company - it will be taxed in Thailand and ALSO in the UK. But because there is a double tax treaty between UK and Thailand - the taxes you pay in Thailand will be credited against the taxes you owe in the UK on the same amount.

If you pay yourself with dividends it's similar.

Edited April 19, 2006 by kudroz

[Mobi]

Cotambear, I sort of misread your OP as I thought you said 3 months in the UK 9 months here. Well the advice still stands, but it looks like it will be quite a while, if ever before you become non- resident for tax.

If you are setting up a Thai company, any Thai tax accountant will tell you that it is pretty standard here that the tax dept will not expect you to make any profits for the first 2-3 years, so you have quite a long grace period before you have to worry about Thai tax. After that, well a travel company can have all kinds of expenses, and the holiday business can be very cyclical. Need I say more? With a good tax accountant and bit of careful planning, you can minimise you tax liability here, and if you are paying tax from other income in the UK, I would be verey circumspect about what you declare over there in respect of your Thai business - especially for the first few years until you get established.