Non UK resident director and his UK company

Director wants to invoice UK company from Spanish sole trade

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I act for a UK company with a non-resident director. The company has no UK employees other than the director and his wife. They are tax resident in Spain. He needs to operate via a UK registered company due to the nature of his business but works 100% online for UK businesses as a head hunter. 

First my understanding is that he is not liable to UK income tax or NI on his salary. IR35 is not applicable as he is non-resident.

He wants to set up as a Spanish sole trade and invoice his company for his work done. Can he do this? I am aware of the related party disclosures in the accounts but can he as a non-resident director actually invoice the company? 

Are there other considerations?

Thanks!

 

Replies (2)

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By Tim Vane
26th Feb 2020 15:04

Yes but he needs to speak to his Spanish accountants since the company is almost certainly not uk resident for tax purposes and will need to be taxed in Spain.

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By Montrose
26th Feb 2020 15:35

The company seems to be Spanish Resident for DTA purposes, but the UK tax authorities will want confirmation of the company's Spanish tax status before exempting it from Corporation tax.

Have you thought about reverse charge VAT on importing services. The tax residence of the company[?Spain] is immaterial for VAT purposes, for which the test is quite different.

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