Should I create LLP as non resident? I'm french.

Questions to help decide if I should have an LLP for my business to reduce tax

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I need someone to help in advising on whether we should form a UK LLP or not. We are TAX residents in France and our 90% clients are in the US, sometimes we have a client or two in the UK. 

If you have UK/France accounting experience please contact me for possible paid consultancy.

We need to know.

- I’m a tax resident of France, I pay my income tax and social contribution on my income in France. Do I need to pay any taxes in the UK as an LLP partner? Please see the two examples below. 

- Is there a specific procedure/paperwork needs to be done to cash out our earnings? We work with clients who pay us through Paypal.

Example one, 100% of revenue coming from the US.

In a nutshell, if my wife and I decided to create an LLP (50% each), both of us are tax residence of France and we both work with US clients. No revenue is coming from the UK at all. Let’s say, for the sake of this example, our turnover yearly is £100,000 with expenses around £20,000 and freelancers paychecks of another £20,000. That leaves us with £60,000 net. How much would we pay in the UK in terms of Taxes and/or National Insurance? What expenses do shall we account for? 

Example two, 100% of revenue coming from the US.

...both of us are tax residence of France and we both work with US/UK clients. 10% of revenue is coming from the UK. Let’s say, our turnover yearly is £100,000 (£20,000 from the UK) with expenses around £20,000 and freelancers paychecks of another £20,000. That leaves us with £60,000 net. How much would we pay in the UK in terms of Taxes and/or National Insurance? What expenses do shall we account for? 

We currently pay 23% social contributions (equivalent to national insurance) and 14% tax on profit. 

Replies (9)

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By Tim Vane
10th Feb 2017 23:16

Not sure how it works in France, but in the UK when one wants specialist professional advice, one generally pays for it.

A quick google search will provide dozens of firms offering help and advice on the pros and cons of setting up an LLP from abroad. The one thing they all have in common is they expect to charge you for their time.

Plus c'est la même chose?

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Replying to Tim Vane:
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By Bassel
10th Feb 2017 23:28

Thank you, Tim. I'm willing to pay for the advice, of course, but I thought this forum was meant to provide help from people who are willing to contribute. I may be misunderstood this forum.

I did my homework but since I'm not good in accounting I seek help which will put me on the right track.

I appreciate your time in responding and apologize for wasting your time.

PS: there was no need for sarcasm.

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Replying to Bassel:
Stepurhan
By stepurhan
11th Feb 2017 09:03

Bassel wrote:

Thank you, Tim. I'm willing to pay for the advice, of course, but I thought this forum was meant to provide help from people who are willing to contribute. I may be misunderstood this forum.

Indeed you did. See the first line of the about page. https://www.accountingweb.co.uk/about-accountingweb This is a forum for professionals to share knowledge, not a general advice page.
Quote:

I did my homework but since I'm not good in accounting I seek help which will put me on the right track.

Which is why you seek professional advice, and pay for the same. You have done some research, but you still don't know what you are doing. The "right track" at that point is to find a qualified advisor, not to continue trying to work it out on your own.

If you are serious about paying for advice then I know of a firm that specialises in dealing with clients with both French and UK tax issues. Are you serious about that?

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Replying to stepurhan:
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By Bassel
11th Feb 2017 13:43

Thank you "stepurhan" for your reply. Indeed I'm serious about this or I wouldn't waste my time in research and asking questions to understand.

Indeed you did. See the first line of the about page

Show me one person on earth who reads the about page of a forum before posting their post. I came to this forum from Google search to one of the threads who was asking questions related to LLP and he received answers. So the logical human attitude would be, hit the ask a question button, register and post your question. I'm a UX consultant by the way.

Why everyone here is so aggressive! What happened to polite and decent responses! It would've been easier for you or the other responder Tim to just write down and advice on a professional accountant or direct me to the right way rather than this aggressiveness!

If you know someone, as you mentioned, who knows about French/UK laws please give me their contacts, hopefully, they will be less aggressive.

Thank you again for taking the time to respond.

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Replying to Bassel:
Stepurhan
By stepurhan
14th Feb 2017 09:58

Bassel wrote:
Indeed I'm serious about this or I wouldn't waste my time in research and asking questions to understand.
I asked if you were serious about paying someone. Not whether you were serious about your project.
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Show me one person on earth who reads the about page of a forum before posting their post. I came to this forum from Google search to one of the threads who was asking questions related to LLP and he received answers. So the logical human attitude would be, hit the ask a question button, register and post your question. I'm a UX consultant by the way.

Show me a forum where UX consultants answer detailed questions for free and this will be relevant. (For those that didn't see the post as originally written, it did not include an offer of paid consultancy).

The fact that you couldn't be bothered to read the about page doesn't alter the fact that this IS a forum for professionals to share advice. Regardless, surely a logical person should be able to realise your query is far too detailed for a quick, free answer.

Quote:

If you know someone, as you mentioned, who knows about French/UK laws please give me their contacts, hopefully, they will be less aggressive.

Had you not gone into this rant, I would have given you their contact details. As it is, I have pointed out this thread to them so they can choose whether they wish to contact you instead.
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Portia profile image
By Portia Nina Levin
11th Feb 2017 17:17

Yes. This works great. You will not pay any UK tax, and your tax in France will probably be near enough the same. I think Tim mentioned this to be fair.

I'll send you my invoice for £10,000 for this asap, and I will not need to charge you VAT since it is a B2B general rule supply. What address do I send it to?

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Replying to Portia Nina Levin:
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By Bassel
11th Feb 2017 17:34

Well, actually Tim didn't say much, same as you! Why everyone here tries to be either funny, rude or aggressive?

My post was a request for information. If you are willing to add a valuable information you are more than welcome, otherwise please do something useful in your life rather than bugging others.

I posted on Upwork for RFP.
https://www.upwork.com/jobs/~012b48e40ff967d381

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Replying to Bassel:
Portia profile image
By Portia Nina Levin
11th Feb 2017 17:53

You'll find that both Tim and I have answered your question.

CLUE: Tim answered it in French.

Good luck finding a decent accountant through Upwork.

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Caroline
By accountantccole
14th Feb 2017 09:54

This definitely isn't a straight forward question. We help with French businesses in the UK and work with French accountants to get the planning right across the two countries. There are a few accountants out there that deal with both sides but you pay for their knowledge and they tend to be city based so not cheap.
If it were a company you would almost certainly be looking at dealing with a French branch. I haven't dealt with an LLP before but I suspect you will end up creating more compliance issues (and costs) than you'll save in tax! You haven't said what you are doing so there isn't enough information to give advice.

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