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I am a British citizen but have lived in Hong Kong since

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I am a British citizen but have lived in Hong Kong since 2003. I am setting up an online business which will sell art-related products to customers globally, but initially targeting the UK. The website is in development, and I hope to be operating by end of September. I want to set things so as to minimise my UK tax liability (I currently have no assets nor income in the and do not pay taxes in the UK). I'm not sure how best to do this, whether to set up a company outside the UK, or does the company domicile make no difference to tax liability in the UK?
Submitted: 9 months ago.
Category: Tax
Expert:  Sam replied 9 months ago.

Hi

I am Sam and I am one of the UK tax experts

If its a limited company and set up in the UK then the company will be liable to tax on its profits and VAT has to be considered, and the same would apply to a sole tradership, but if you set this company up out of the UK then you will have no UK tax exposure as the business nor you are UK based but may have to consider import duties and VAT on your customers for goods sent to the UK (but this is dependent where they will be sent from)

I have added a link below as to when import duties and VAT would arise

https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

Sam, Accountant
Category: Tax
Satisfied Customers: 13809
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Customer: replied 9 months ago.
Hello Sam. Thank you for your reply. I do have a few follow-up questions, and would like your thoughts on the following please:1. The products will be sent from Asia, but will be sold via a website, plus online advertising, also some UK magazine adverts, possibly also UK radio ads. I'm concerned that this would mean that the business is being transacted in the UK, therefore liable for VAT. Plus if the website is hosted in the UK, then potentially corporation tax.2. Although I am based in Asia, I plan to have a UK freephone number connected to my overseas phone. Would the fact that a UK customer calling a UK freephone 0800 number constitute "doing business in the UK"?3. Finally, what if I have someone based in the UK talking directly to customers, dealing with sales enquiries, etc? Would this swing the pendulum further towards "doing business in the UK"?4. On a totally unrelated subject, I have a few similar basic tax questions in relation to a Dutch business project I am involved with in the Netherlands. Would you have any suggestions as to how I could get similar advice in relation to this?5. If it's easier to communicate, my email is rg864864 at g m a i l . I hope I haven't offended this website by sharing this, I'm new to the site so am not familiar with the rules...Many thanks, ***** ***** forward to hearing from you.Regards,Richard

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