How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am working on a project with a colleague who has dual citizenship

Resolved Question:

I am working on a project with a colleague who has dual citizenship with UK and Australia. He is about to return to Australia to live and work full time. I am a UK resident and working full time in this country. We are wanting to set up a limited company but are concerned about what the tax implications are should this be registered in the UK or Australia for both of us as individuals. The product we have developed has marketing potential in the US and Australia and won't necessarily be manufactured in the UK. Please can you advise what the best way forward is.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You have to look at the tax position. Australian Corporation Tax (CT) rate is 30%. UK CT is 20%. Thus Australia looks like a non starter, but you should seek local guidance for the full Australian tax situation. This is a UK tax site.

If the company's annual turnover exceeds or approaches 91K you will have to register for UK VAT. Exports are, of course, zero rated so the opportunity to recover input VAT paid should not be overlooked in your tax planning, especially if the product is manufactured in the UK.

There you are, a quick canter through the possibilities; I do hope I have helped a little with your venture.
bigduckontax and other Tax Specialists are ready to help you