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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have quite a complicated question regarding my taxes and

Resolved Question:

Hello. I have quite a complicated question regarding my taxes and unsure where to start for advice. Might you be able to help point me in the right direction?
Submitted: 3 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your question.

Please provide more details of your complicated question and I will try to help you.

Many thanks

Customer: replied 3 months ago.
I am a freelance journalist and business owner and am considering moving my business affairs back to the UK after 15 years living in Spain. I recently moved to Morocco to start another business (I pay taxes and rates on that business in Morocco), however I continue to write on a freelance basis. Since I am no longer based permanently in Spain (I do return every 6-8 weeks for a period of about a week) I am wondering if I would be better off to re-establish that part of my business in the UK (I am a British citizen). It costs me €275 to be a freelancer in Spain, that is before income tax or VAT is applied, which is crippling my business. Friends think I might be better off being established in the UK (even though I don't live there full time), but I have been gone so long I am unsure the best course of action.
Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your question.

In order to carry out a business from the UK, you should have a business address in the UK. Do you visit the UK and if so how frequently.

Many thanks

Customer: replied 3 months ago.
I visit the UK every couple of months or so to see family and friends and I still use my father's address for mail etc
Customer: replied 3 months ago.
I am a sole trader i.e. a freelance writer so I just need to be able to invoice and pay the relevant taxes, it is not a small business as such
Customer: replied 3 months ago.
Also, my invoices are quite often in Euros or dollars, as well as stirling
Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your reply.

It is possible to carry out the business from the UK using the family address as business address as you visit the UK every couple of months.

It may be better to discuss the various options on a phone call in addition to exchanges here.

Please let me know if a phone call option is acceptable and I will send you an offer.

Many thanks

Customer: replied 3 months ago.
I'm traveling on assignment at the moment in the wilds of Morocco and my cellphone coverage is very bad (not to mention very expensive). Unfortunately Maroc Telecom have blocked all other means such as skype and whatsapp. That's why I wanted to make the enquiry online - please can we continue here. Mainly I'd just like an idea of what my options are, and whether it makes sense to make the transition or not.
Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your reply.

Your options are to trade as a sole trader or to form a LTD company. Depending of your income and the fact you are non resident, there may be an advantage in running the business as a LTD company.

Is this what you were considering..

I will be away rom my desk for the next 15 mins and will respond to your reply later.

Many thanks

Customer: replied 3 months ago.
Thank you. Yes, I'd like to hear more about that option although I was thinking more along the lines of being sold trader. I don't know much about the LTD option. I don't make a huge amount from writing - probably less than 15,000 GBP per year at the moment, and (I am hoping) the new business in Morocco (exporting handmade homewares) will become my main income. But, as a start up, I need to maintain my day job for now at least. I do not want to move all my business affairs to Morocco as long-term I do not want it to be my home base although the business will remain here, and I do want to keep at least one foot in the UK or Spain. Depending on which seems more viable. I am currently paying income tax and IVA (VAT) in Spain as I said.
Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your reply.

If your income is not likely to exceed £15,000 pa initially, you are better off running your profession as a self employed sole trader.

All profits would be taxed at basic rate of 20% after your personal allowance.

If you were to trade as sole trader then you would also pay national insurance Class 2 (weekly flat rate) and Class 4 contributions (profits based).

Trading as LTD company, your profits would attract a Corporation Tax rate of 20%. Here again, draw a lower salary that woudl be covered by personal allowance and also have salary as a tax allowable expense in the company's accounts.

You could draw a lower salary (sufficient that you don't actually pay NI contributions but they count towards state pension contributions). More information on this can be found here

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

There is a lot that can be said but this is good starting point to consider. The rest can be classed as effective tax planning exercise. I will be happy to follow up when you are next in the UK as you visit every 2 months.

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.

Customer: replied 3 months ago.
That's great. Thank you very much. Certainly it seems like I could save quite considerably by registering as a sole trader in the UK. I will have a think and will come back to you with any further questions with a view to following up next time I am in the UK (most likely November).
Expert:  taxadvisor.uk replied 3 months ago.

Thank you for your reply and good words.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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