Share this content
23

personal tax

tax question

Didn't find your answer?

A client that is a shareholder and director of a company in cyprus  He is a uk resident  The company operates in cyprus has an office and employees  Our client does not receive a dividends or any income   What are the reporting requirements in the UK ?

Replies (23)

Please login or register to join the discussion.

By johngroganjga
11th Sep 2019 16:15

Nothing if no income to report. Good practice though would be to make a white space disclosure of the company, of the fact that he is a director of it, and that no employment page has been produced because no salary or benefits were provided to him by the company. Most software will probably make that disclosure for you automatically if you ask it to.

Thanks (0)
Replying to johngroganjga:
avatar
By Tax Dragon
11th Sep 2019 16:27

What about for the company?

What about transfers of assets abroad?

Etc.

You might be right on all counts, but you're drawing some major conclusions from the lack of information.

Thanks (0)
Replying to Tax Dragon:
By johngroganjga
11th Sep 2019 17:31

The OP didn’t say the company was also his client, so I assumed that his question was only about the UK resident director.

Thanks (1)
Replying to Tax Dragon:
By Tim Vane
11th Sep 2019 18:07

Tax Dragon wrote:

What about for the company?

What about transfers of assets abroad?

Etc.

You might be right on all counts, but you're drawing some major conclusions from the lack of information.

Well, given that the title of the question is "personal tax" I think it's fair to draw the major conclusion that this is not about the company.

Thanks (0)
Replying to Tim Vane:
avatar
By The Dullard
11th Sep 2019 18:25

Well, given that the position of the company may be relevant to the personal tax analysis, it is the proper bridge to cross first.

Thanks (0)
Replying to johngroganjga:
avatar
By The Dullard
11th Sep 2019 16:40

I do hope you don't advise people in real life?

Thanks (0)
Replying to The Dullard:
avatar
By Tax Dragon
11th Sep 2019 16:46

Can you tell me, from the info provided, that John's answer is watertight?

Thanks (0)
Replying to Tax Dragon:
avatar
By The Dullard
11th Sep 2019 16:52

I was responding to John. His response is completely misguided, given the lack of detail in the OP.

Thanks (0)
Replying to The Dullard:
avatar
By Tax Dragon
11th Sep 2019 16:53

Oh yes. I apologise.

I'm not sure I like this format... it does need another level of indent.

Thanks (1)
Replying to Tax Dragon:
avatar
By atleastisoundknowledgable...
11th Sep 2019 18:22

Tax Dragon wrote:

I'm not sure I like this format... it does need another level of indent.


Carp isn’t it? I don’t mind adverts, but do they really have to have so many inbetween the question and the answers??! And why have all the ‘call to actions’ shrunk and become easily missable?
Thanks (0)
Replying to The Dullard:
By johngroganjga
11th Sep 2019 17:32

In what way misguided?

Thanks (0)
Replying to johngroganjga:
avatar
By The Dullard
11th Sep 2019 18:24

Well, if the director shareholder is here, then it may be that the Cyprus company is managed and controlled here. If not, you may have a transfer of assets abroad issue for the UK resident individual, who might then be personally liable to tax on all of the company's income. We just don't know, because there isn't enough information.

Thanks (0)
Replying to The Dullard:
By johngroganjga
11th Sep 2019 19:03

As I have already said, the OP’s only client according to his question is the UK resident individual.

Thanks (0)
Replying to johngroganjga:
avatar
By The Dullard
12th Sep 2019 10:16

Yes, but if the company is not UK resident, then the income of the company could be taxable on the individual under the TOAA legislation.

Thanks (0)
Replying to The Dullard:
avatar
By Tax Dragon
12th Sep 2019 10:36

You're going for... I've lost count... 6th time lucky?

Thanks (0)
Lone Wolf
By Lone_Wolf
11th Sep 2019 16:20

Seems there's a punctuation thief on the loose.

Thanks (0)
Replying to Lone_Wolf:
avatar
By Tax Dragon
11th Sep 2019 16:28

Twin brother of the information thief.

Thanks (1)
Replying to Tax Dragon:
Lone Wolf
By Lone_Wolf
11th Sep 2019 16:32

Think there might also be a sister that's against capitalisation.

Thanks (0)
Replying to Lone_Wolf:
avatar
By atleastisoundknowledgable...
11th Sep 2019 18:23

Lone_Wolf wrote:

Think there might also be a sister that's against capitalisation.

Most of my clients are against capitalisation. “Expense it, expense it”. “P&L, tax write-off ...”

Thanks (1)
Replying to Lone_Wolf:
avatar
By johnhemming
11th Sep 2019 19:19

At least he does use two spaces after the missing full stop.

Thanks (2)
avatar
By Matrix
11th Sep 2019 17:33

Where is the company managed and controlled - how many board members and where are decisions made?

Thanks (0)
avatar
By Tax Dragon
11th Sep 2019 20:19

On the question of the company's reporting obligations, why assume when we can ask? OP, is your client concerned whether the company of which he is director and shareholder has any UK reporting obligations?

Beyond that, as The Dullard has said (but other respondents seem to keep missing), if the company's profits are liable to UK CT then they won't be liable to UK income tax on the OP's client. Otherwise, they might be. And failing to mention that (when there's so little information to go on) is playing fast and loose with the director/shareholder, his possible reporting obligations and indeed his money.

Thanks (0)
avatar
By Tax Dragon
12th Sep 2019 09:17

I was making a major assumption too. I assumed the OP would show interest in the replies.

You'd think I'd know better by now.

Thanks (1)
Share this content