ralphster

Hi folks,

Is anyone on the forum a Director of a UK Ltd company, running the company from and living in Canada?

How does it work with salary, dividends and corporate tax?

Do any salary and div payments go down as Cdn income, even if the salary is paid in the UK?

Does it matter which country salary is paid?

Is it true that Ltd company corporation taxes are double-taxed by UK and Canada?

Thanks

JonboyE

Directors
Tax liability

If you are a non-resident director then your tax affairs will be dealt with in the HMRC Residency.

You will need to complete a Return to self assess your UK tax liability. You will be liable to UK tax on remuneration and benefits paid from the UK and abroad that relate to any duties you perform in this country.

You will not be liable to UK tax on any remuneration and benefits you receive that relate to any duties performed outside the UK - as long as you remain non-resident.


http://www.hmrc.gov.uk/cnr/self_assess.htm#4

I would avoid dividends as you don't get the benefit of the preferential tax treatment in either country. But is you are tax-resident in Canada then everything you earn, anywhere in the world, is treated as taxable income in Canada. It doesn't matter if the money is sent to Canada or not.

No.

Not true. A corporation pays tax in the country where it is tax resident, just like an individual. If it has to pay tax in another country it can claim a foreign tax credit.

Nikki Ian

Yes you can run any company you want from another country, I ran my uk online company from Canada when i first moved here.

I am a little surprised you are asking tax question on this forum. Speak with your Uk accountants, They should be able to register you personally as Non Domicile for tax purposes.

You only pay personal tax in the country you are resident, if you are in Canada pay it in Canada.