Hello, Andrew, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You can easily set up a an UK limited company using one of the numerous bureaux available. These companies have there Articles drawn very wide to cover just about any business activity. There is no requirement for an UK company to have any shareholders or even directors British Citizens and none need reside in the UK. However, the company will need a registered office in England or Wales, but again various commercial outlets offer this service.
Any profits made by the company would be liable to UK Corporation Tax (CT) at 20%. These rates are in a state of flux, Ross Martin advises:
'Legislation was introduced in the Finance (no 2) Act 2015 to reduce the main rate of CT for all non-ring fence profits to 19% for Financial Year 2017, to set the rate at 19% for Financial Years 2018 and 2019, and reduce it to 18% for Financial Year 2020.
It was announced at the Budget 2016 that the CT rate for Financial Year 2020 would be reduced to 17%.'
By billing the company from Mozambique the UK CT liability could, of course, be reduced to zero.
I do hope that you have found my reply of assistance.
As a director of a company any emoluments you receive must be made through PAYE channels so you will have to register the company for this procedure.
As an EEA citizen you are entitled to a Personal Allowance, currently 11K, and income over that will be liable to UK Income Tax [basic rate 20%]. You will also be liable to UK NI which kicks in at GBP 5965 and is charged at 12%. The company would also have to pay the employer's element of NI also [13.8%].
It might well be a good idea to keep income below these levels.
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Delighted to have been of assistance.
Thank you for your support.