Director, and Employee in UK. Now moving country..

I'm director, employee of company in UK. Now moving country. Can I invoice the business?

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I am the director and shareholder of a UK business. I also happen to be currently employed by said business in UK via regular payroll. I don't receive extra renumeration for being a director.

 

I am now planning on moving countries, and I would to understand what the best way would be to get paid by the UK business. Ideally I invoice my own business on a regular basis for services provided. Either as a sole-trader (from abroad) or through an entity that I could setup abroad. This income would naturally be taxed in my new tax residence (abroad). Ofc I still have to perform UK director duties, for which I need to be paid through UK payroll and taxed in the UK too.

 

Are there any issues with this?:

- providing my director duties for free? ie not need to be on the UK payroll for this

- invoice my own company for employment services from a foreign entity?

 

I imagine transaction with a related party would have to be disclosed as part of the audit, but would this ring any alarm bells?

 

Thanks in advance!

Replies (4)

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Caroline
By accountantccole
05th Aug 2022 09:54

Where are you going to? Double tax treaties will be different depending on destinations. (Message me if France)

It is normally difficult to distinguish between your sole trade work and services as a director. In France we advise against this as the authorities are likely to see the self employment as being hidden employment and payroll taxes and social charges would be due. These costs would be higher than sorting it correctly in the first place

Where are your director's duties being performed - if returning to the UK, a UK salary may be appropriate. the double tax treaty would deal with where it is taxed, normally UK first but you may need to disclose overseas.

You also need to watch whether the UK company is subject to local corporate taxes, as it will be controlled and operated from that country.

Find an accountant who knows both sides who can advise

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By Paul Crowley
05th Aug 2022 09:59

What happened to David's posting
My guess is someone reported it, as he suggested OP gets tax advisors from both the jurisdictions, one of which is unknown. Abroad is stated, but not helpful and is stating the obvious.
David's advice was correct, as otherwise this would need to be full of questions.
OP needs a discussion that really does not fit this medium
And as Aweb says, any comments here should not be relied on
OP needs advice that CAN be relied upon.

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By Justin Bryant
05th Aug 2022 10:07

If you go to a tax haven like Dubai you can simply pay yourself a tax-free and CT deductible salary there can't you?

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By paul.benny
05th Aug 2022 10:11

+1 to comments from Paul and accountantccole. I'll at least credit the OP with thinking ahead and trying to do right thing.

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