Thank you for your question.
Are you UK resident for tax purposes?
Would the company pay dividends?
Thank you for your reply..
Companies pay corporation tax on profits and the rate is 20%.
If a company is established abroad, provided no business activity is conducted from the UK then these profits are not liable to UK corporation tax.
Any salary/dividend you receive from the company would be chargeable to UK income tax as UK residents pay tax on worldwide income and gains. You claim foreign tax credit relief for tax suffered on these earnings and gains.
As from this tax year there is dividends allowance and the first £5,000 of dividends is tax free.
Based on what your intention is to pay only contributory tax on your earnings, then your only option is to set a company overseas and draw a salary and dividends.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Thank you for your reply.
You can ask follow up questions once the answer is accepted by using the same thread.