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Nonresident director UAE drawing salary from UKLLC

I am a UAE resident planning to incorporate a UK LLC for my SaaS (software). How will I get paid

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I am a resident of UAE ( united arab emirates ) .

I am planning to incorporate a company in UK LLC , for my Software-as-a-Service ( SaaS ) company, that delivers software products to customers, primarily to  N America, UK and Europe. 

As far as UK is concerned, I will be a non-resident as I will be a sole director of the company but working outside the UK, being a resident of UAE. 

Couple of questions.

1) Can I form a 1-member uk l ?

If not - what would be the best structure to form for a single-member non-resident director company ? 

2) If I am the sole nonresident director, and I am a resident of UAE , how can I get paid ? 

Can I (as a non-resident director) draw a  salary or is it only through dividends (issued after paying corporate income tax ) ? 

Any tax treaties between UK-UAE that I should be aware of or any witholding to be aware of ? 

 

Replies (22)

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By atleastisoundknowledgable...
20th Mar 2019 07:28

This is a relatively specialist subject ... I’d find an experienced accountant to help with your specific circumstances if I was you. Or maybe 2 - one that knows the UK rules and another the UAE rules.

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By JCresswellTax
20th Mar 2019 09:53

If you give me a few hours I will research all of this and come back to you.

I don't charge for my time.

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Replying to JCresswellTax:
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By Martin B
20th Mar 2019 10:05

Would you like to come and work for me?
I will offer you flexi time and all the work you want.

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Replying to Martin B:
By JCresswellTax
20th Mar 2019 10:22

Sorry, no time. My day is spent providing free advice on online forums.

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Replying to JCresswellTax:
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By carnmores
20th Mar 2019 13:15

but plenty of time to slag people off for asking. if you don't want to help don't comment.

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Replying to carnmores:
By JCresswellTax
20th Mar 2019 14:10

Please point out where I slagged anyone off?

My report is now almost finished.

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Replying to JCresswellTax:
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By carnmores
20th Mar 2019 14:39

You know exactly what I mean your clear cynical response tells all. You may even take it to higher levels shortly. You are far from the worst on Aweb but I deplore the practice of telling OPs go away and pay an appropriate accountant how dare you ask on here

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Replying to JCresswellTax:
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By Martin B
20th Mar 2019 10:06

Would you like to come and work for me?
I will offer you flexi time and all the work you want.

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Replying to JCresswellTax:
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By Accountant A
20th Mar 2019 10:17

JCresswellTax wrote:

If you give me a few hours I will research all of this and come back to you.

I don't charge for my time.

Come on! Surely you can drop what you are doing and give him the advice now! Not as if this is valuable professional advice or anything like that.

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Replying to Accountant A:
By JCresswellTax
20th Mar 2019 10:23

Good point, I will get it on it right away :)

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By carnmores
20th Mar 2019 12:56

ignore the cynics, the brief answers subject to certain conditions:
1) yes
2) salary or dividends and Yes

there is a DTT with UAE

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Replying to carnmores:
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By divyaprakash
07th Apr 2019 08:09

Thanks carnmores.

Would that be any UK salary withholding ( I checked the DTT with UAE and could not find one, but trying to confirm that again though ).

Also as I understand - I would not be paying UK taxes on payroll right, as I am a UK non-resident. So - no PAYE for me I guess.

If that were the case - how to run payroll for myself (for salary ) ?

Also for dividends again being a UK non resident, would the UK dividend tax apply for me as well.

I understand I need to pay taxes / report income in UAE - but I am mostly trying to understand the UK tax obligations here ( since I understand this site/community is specific to UK and for UAE, I will ask here in UAE locally of course !)

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By Tim Vane
20th Mar 2019 13:26

You'll need to review the DTT thoroughly but it is likely that the company and the directors will be non-resident for UK tax purposes so be sure to notify HMRC that no CT600 is needed and get NR tax code for any salaries paid. It is likely that all the profits will be taxable in the UAE so be sure to get a decent adviser. You'll still need to prepare accounts for Companies House, and you should get specialist VAT advice.

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Replying to Tim Vane:
By slipknot08
20th Mar 2019 14:21

Tim, I thought the OP said the company would be a UK incorporated company? (I've probably misunderstood, in which case, as you were...)

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Replying to slipknot08:
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By carnmores
20th Mar 2019 14:41

agreed CT will likely be necessary the clear intention is to set up and trade from a UK Ltd Co

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Replying to carnmores:
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By Matrix
20th Mar 2019 14:47

Which is managed and controlled offshore?

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Replying to Matrix:
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By carnmores
20th Mar 2019 15:34

Which is why I included the word likely not will

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Replying to carnmores:
By Tim Vane
20th Mar 2019 15:34

carnmores wrote:

agreed CT will likely be necessary the clear intention is to set up and trade from a UK Ltd Co

That may well be the intention but it may well not be so, since where there is a DTT it will be used to determine residency. If you have read the DTT and are happy that it is a UK taxable entity then I concede the point (though I am surprised in this case).

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Replying to Tim Vane:
Psycho
By Wilson Philips
07th Apr 2019 09:29

Treaties do not necessarily determine residence - that is primarily a function of local legislation.

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Replying to slipknot08:
By Tim Vane
20th Mar 2019 15:27

slipknot08 wrote:

Tim, I thought the OP said the company would be a UK incorporated company? (I've probably misunderstood, in which case, as you were...)

Like I said, the OP will need to check the DTT, but I suspect that without a PE it will not be taxed in the UK. I think to be sure we will have to wait for JCreswellTax to complete her report which will no doubt cover the DTT in detail.

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Replying to Tim Vane:
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By divyaprakash
07th Apr 2019 08:02

OP here.

Can you help clarify what a "PE" in above response is ? Sorry - I am not familiar with the same.

Also - yes - this is a UK incorporated company of course.

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By carnmores
20th Mar 2019 15:55

I will read it later today and report back if I can understand it

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