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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13863
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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We have a uk company (with no sales and we won't sell in the

Customer Question

Hi we have a uk company (with no sales and we won't sell in the uk) which has some trademarks & patent application related to it. We are looking to establish a company in India & relocate there ourselves.
If we establish it as a subsidiary of the U.K. Company do we need to pay uk tax on foreign income?
In the future we were planning on raising funding for this company - and was thinking the uk company could be a useful vehicle for it.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
What would be the recommendations if we are also moving abroad to minimise uk tax liability.
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question

Yes you will as the companies are connected and the UK office is the first to be established and therefore will maintain a UK liability both for the company and any directors and their tax positions.

As individuals there may be scope to be treated as not labile to Uk tax due to non residency as long as

1) You move and work and out of the with visits of no more than 91 days a year in the Uk non of which are for work purposes, and that you sever all other ties other than the existence of this company based in the UK (so no family, no property etc)

2) That you ensure that you comply with tax jurisdictions within India and meet all their tax obligations

3) That you allow HMRC to be involved in the process (if you are paid from the UK) by completing form P85 (each director involved) so HMRC can make a formal decision regarding your tax residency and tax position

Link here for form P85 https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85 this is either an online submission or you print off, fill in and then post to HMRC

Let me know if I can assist further

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Hi Sam, thanks, ***** ***** the Indian company is a subsidiary of the UK company, and sales are collected from Indian customers would that mean we would need to pay tax on sales in India through the Indian company and again on the sales in the UK?If so Is there any benefit to maintaining the UK company?
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response

Yes but then the tax you suffered in India against the company profits could be offset against the Uk corporation tax bill that arises in the UK

I cannot comment on whether there would be any benefit in maintaining the UK company as we are Uk tax experts not financnail advisers and are not permitted to offer advise on business strategies, you would need to seek financial advsie laying out your reasons why you would maintain a UK presence - and then permitting a financial expert to weigh up the benefits for you

We do have UK financial experts here on just Answer, so perhaps listing a new question after we have concluded the tax position would be an idea.

Please let me know if I can assist you furtehr with the tax position, if you have all that you need, then it would be appreciated if you could rate the level of service I have provided (or click accept) as this ensures Just Answer credit me for my time

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam thank you for this, I rated you 5 stars.
Expert:  Sam replied 1 year ago.

Hi

Thank you - that is much appreciated

Thanks

Sam

Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Sam replied 1 year ago.

Hi

Did you want a phone call from UK tax or re the financial side of matters?

Thanks

Sam

Customer: replied 1 year ago.
Hi Sam yes that would be useful, would it be possible tomorrow? Thanks Aalok
Expert:  Sam replied 1 year ago.

Hi

Which expert did you want? Tax or financial and note there is an additional charge due -

If its for financial you will need to post a question on the UK financial forum within Just Answer.

If tax can I ask what you wish to discuss?

Thanks

Sam

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