kittycat1

Hi all,

Ok bit complicated so any help would be appreciated.

I am currently registered as self employed (as a sole trader)in the UK, I am moving to Dubai in Sept being sponsored by a company to move out there and work full time- hunkydory.

I am also in the process of setting up a company in the UK.

Now how does this stand me tax wise- if I have income from sales in the UK but living in Dubai. I have one employee in the UK who will be managing everything, she is self employed so invoicing me monthly- she is being paid on a commission basis so will be paid from sales- obviously she is responsible for her tax etc.

Realistically I will be putting most profit back into the company for the first couple of years- but how do I stand tax wise on this- if I have income from UK sales does that mean I would have to pay tax on everything or just on what I am making from the UK, so if I make no profit in the UK I pay nothing or would I have to pay tax on my salary in Dubai? or is there a way that I can dodge this until I am a UK resident again? I spoke to a guy at the inland revenue and he nearly had a nervous breakdown by the time I explained everything to him and wasn't much help in the end- I possibly got him a bit confused.

I'm guessing theres a few of you out there with businesses in both countries, so you know all about this stuff, so would appreciate any advice you could give me.

Warmest regards

Cat

Millhouse

Once upon a time I was an accountant and a director of a small company... but I could still be very wrong

I'd say that if you have a UK registered company, then the profits (to the extent that there are any) that the company makes are liable to UK corporation tax. If the company is paying you a dividend that would have already been taxed so will be fine.

I would set up a 'proper' UK limited company for all of this and be a director (and not employee) of it. Better still if you can just own the equity and find someone else you trust to be the director. Sole trader etc will no doubt cause a tax liability and hassle.

A proper UK Limited company will require doing corporate filings and accounts - these are dead simple and should only cost you a hundred quid for so to get a cheap local accountant to produce them for you (assuming it's a small operation)

As a pure 'investor' you would stay non resident - your dubai salary will be tax free. I guess...