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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am french, with a house in Portugal. I have a UK based

Resolved Question:

Hi
I am french, with a house in Portugal.
I have a UK based LTD. The activity is web based (non geographically bounded).
However, the bank account would be in Portugal because I am not UK resident and my activity is less than 2.5Mio SGP).
My questions:
- Can I have a UK LTD with a bank account outside UK? (and no account in uk?)
- Where will be the tax based (UK or Portugal?)
- How to recuperate VAT for the costs issued in UK - Portugal and France?
- How to distribute VAT ollected to my clients on the web?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. There is no requirement for an UK company to have any directors nor shareholders British Citizens nor need any be resident in the UK or even the EU or the EEA, The only essential link with the UK will be the Registered Office of the company which must be situated within the UK. Any emoluments paid to directors must be made under PAYE arrangements. The company's tax base will be the UK and its trading subject to UK Corporation Tax (CT). Registration for UK VAT would be necessary if the aggregate turnover of standard, reduced and zero rated supplies exceeds or approaches 82K in any one year. Below that threshold there is no requirement to register for UK VAT. If the company is registered for VAT then any VAT paid on purchases made within the EU may be reclaimed as inputs. Any sales with the EU, provided that you have the VAT or equivalent number of the customer, may be the subject of the reverse charge where you charge VAT on your sale and immediately recover it as an input thus effectively making it zero rated. For calculating the threshold such sales will count towards the 82K. Don't blame me, I didn't invent the system! Please do not hesitate to follow up on this thread if need further advice. I do hope that my reply has been of use to you.
Customer: replied 1 year ago.
Thank you for your fast reaction but the VAT situation is still unclear to me:- I thus can solely use the Portuguese account to backup the LTD revenues.
- if I am below 82Ks, how do I claim VAT back of my CAPEX (laptops, phones etc done in EU countries) and sales without a number during the first year?
Thank you
Expert:  bigduckontax replied 1 year ago.
Yes, there is no problem with using a Portugese ban account to service yoyr company's business. If the company is below the VAT threshold there is no requirement to register for the tax. This does not preclude you from so doing, but you will have to convince HMRC that a registration is necessary which you should have no difficulty in doing providing you emphasise that you are in an exporting business. HMRC are making registration these days difficult for organisations with turnover below the threshold. It is very common for the first VAT return to be skewed as initial expenses input taxes are recovered. If you are not registered you cannot, of course, recover these inputs.
Customer: replied 1 year ago.
so in other terms there is almost no way to recover VAT below 82ks until these 82 Ks are effective?
Expert:  bigduckontax replied 1 year ago.
No, not quite, as these inputs could be recovered if HMRC allow a registration of the company trading below the VAT threshold which they usually do if the organisation applying are involved in export businesses.
Customer: replied 1 year ago.
Thank you very much for these answers
Kind regards
jcs
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance. Please be so kind as to rate me before you leave the Just Answer site.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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