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: 3371
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

We have a client who has formed a UK private limited company

Resolved Question:

We have a client who has formed a UK private limited company and is the major shareholder of it. However, she currently lives in Saudia Arabia but has a British Passport. Would she need to file a UK tax return is she receives dividends from the company? Will she also be liable to pay taxes in the UK even though she is based in a foreign country and will only be doing private events in the UK?
Thanks
Regards
Paul
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Paul, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with you question. Firstly, when she left the UK for Saudi Arabia did she complete a Form P85 and send it to HMRC? If she did not she should do so immediately, fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt HMRC will classify her as non resident for the tax year after her date of departure and furthermore split the leaving year into two potions, one resident and the other non resident. Even as non resident she is still liable for UK Income Tax on these dividends, see HMRC Advice Note SAIM1170 viz: ' A non-UK resident person is taxable on savings and investment income taxable under Part 4 ITTOIA05 only on income arising from a UK source (ITTOIA05/S368 (2)). ' However, for the moment dividends received will have with a notional 10% tax deducted (system changes in the 16/17 tax year). However, if her dividend income does not exceed her personal allowance of 10.6K, available to all EEA citizens, then she will have no tax to pay anyway. There is no requirement for her to self assess unless she is in receipt of income which has not been taxed at source. If, of course, HMRC require her to self assess she must comply irrespective of her level of income. Once classed as non resident she must not exceed 91 days in the UK in any one tax year. In theory this can be averaged out over four tax years, but the general consensus of opinion amongst experts on Just Answer is never to exceed the magic 91 days. I do hope my reply has clarified your client's position. Don't forget the P85, it will make life much easier for her.
Customer: replied 1 year ago.

Dear *****

She has not actually left Saudi Arabia to live in the UK. She comes to the UK intermittently for events. Does that change anything or she is considered a non-UK tax resident so long as she spends less than 91 days in the UK?

As she receives dividends from the company, are you saying she would not need to declare those on her UK Self-assessment tax return if they are less than her annual personal allowance of £10,600?

Since the company was incorporated in the UK, will it allow her to use the company name around Europe for other events since she is in the jewellery business?

Thanks for your help.

Kind regards

Paul

Expert:  bigduckontax replied 1 year ago.
I gathered that from the question Paul. As I told you she should complete a Form P85 which she should do as she quit the UK to ensure that HMRC have her classified her as non resident. One so classified she remains non resident provided she does not breach the 91 day rule I set out in my original answer. I am not saying she need not declare them on self assessment, indeed she must. What I was saying is that there is no requirement to self assess unless in receipt of income which has not been taxed or one is required by HMRC to self assess. The use of the company name world wide will cause no problems. The company's profits will, of course, be taxed under the Corporation Tax (CT) regime. Don't forget that dividends do not reduce the company's exposure to CT, unlike directors' fees, salaries and the like which do. Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3371
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3371
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions