Sole trade business in UK, but the owner works from EU

Sole trade business in UK, but the owner works...

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I have not had quite this situation before. A client owns a UK based sole trade but is now thinking of living permanently in another EU country. He wishes to continue his sole trade which has only UK based customers. He  will make a few annual visits to UK to see customers (staying in hotels) but most of his work will be done via phone and internet from his overseas base. He will have a business address in UK but no private address. Is he principally taxed in the UK or his country of residence?

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By Expat24
03rd Apr 2015 12:42

He cannot operate that way...

there is a deemed cessation of his UK self-employment business when he becomes NR in the UK.  You do not say where he is moving to, but assuming it is a country charging income tax, his activities are being carried on there (regardless of where his customers are based) and he is taxable (also equivalent of NICable & VATable) in that country.

You could suggest he incorporates and the UK company could continue to trade in the UK but he does have the issue of extraction of income from the company eg ees+ers foreign social insurance (NIC equivalent) and dividends which will be subject to very different rates and rules, than in the UK.

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