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Tax arrangements when moving abroad

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Hello, my wife and I are co-directors of a VAT registered, UK limited company and we intend to move to Poland next year (she is Polish, I am British). We don't employ any staff and the work we do is all online, serving clients from various parts of the world. 

We'd like to continue to operate our company from Poland but are unsure how our tax arrangements may change. I know there are some tax treaties between the UK & Poland but the legalese goes a little over my head!

This could be further complicated by the Brexit transition period coming to an end this year; potentially leading to some new tax rules coming into effect from January 2021.

If anyone has any thoughts, experience, advice, warnings etc on this topic, that would be very much appreciated!

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By Sarah Z
05th Aug 2020 19:50

Go and have a paid consultation with an accountant who specialises in this, as there is lots of consider

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By Anonymous.
05th Aug 2020 21:15

Consider whether you need a UK company if you are operating globally from Poland. Maybe set up up a Polish company.

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By Tax Dragon
06th Aug 2020 12:43

I assume your company is (tax) resident in the UK by virtue of its registration as well as because you run it here. I assume it will cease to have a PE in the UK when you move to Poland. I assume it will become (tax) resident in Poland when or after you move there.

The UK-Poland double tax treaty thereafter gives Poland sole taxing rights on the company. So, unless there are other reasons to close one company and open another [which there may well be], I think the direct tax may be simpler if you don't. However, be aware that there will be a deemed disposal under TCGA 1992 s185 when the company ceases to be resident in the UK.

There are other factors to consider, such as VAT.

The recommendation is to take advice before you move; don't wait till after.

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