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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If I set up an LLP in the UK, can I pay no tax on my income

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If I set up an LLP in the UK, can I pay no tax on my income arising from it by moving to a country which does not charge tax on overseas income?

Thanks for your question, my name is XXXXX XXXXX I am one of the UK tax experts here on Just Answer

I am afraid the answer is no - as an LLP works like a partnership for tax purposes, so the net profits made, would remain chargeable in the UK.

If you set up as a limited company - then you could draw salary on which code NT (No Tax) would apply - by completing form P85 for HMRC.



Customer: replied 4 years ago.

Thank you.


So instead of forming an LLP with my business partner, I should form a private limited company with him. We would each own 50% of it, and it would conduct most of its activities in the UK, but I would live and work abroad. In this circumstance, I would pay no UK tax?



Hi Graham

Thanks for your response

The business would pay tax, but you as an individual would be able to apply for No tax status on salary drawn, due to non residency.



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