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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10393
Experience:  FCCA FCMA CGMA ACIS
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That would be great, no, the question is regarding

Customer Question

Hi Pearl. yes that would be great
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: the question is regarding non-residents and corporation tax, vat. So if i have a uk company limited by shares, the company operates abroad. it buys product in nonuk nonEU territory and it sells in NonUK NonEU territory. The company is registered for VAT. Only the director (who is also shareholder) is employed. this individual is a foreign, NON UK resident and works from abroad. He is paid a salary. the company does not generate a net profit (after deducting director salary). in general terms, i understand that the company will not be subject to corporation tax, nor require to pay vat as all are out of scope.
JA: Which tax year is the deduction for?
Customer: its all for the first year of operation
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
as an extra comment, because director is nonuk resident, there is no NIC payments done locally.
Expert:  Virtual-mod replied 1 year ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 1 year ago.
hi?
Expert:  bigduckontax replied 1 year ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

The UK company will be subject to UK Corporation Tax (CT) at 19% on any surplus made at the end of each accounting period.

Customer: replied 1 year ago.
as long as all sales are non eu. It will be out of scope. And as to Corp tax, salary of a foreign employe (director) is also deductable? Is that correct?
Expert:  bigduckontax replied 1 year ago.

Correct.

Sales outside the EU will not be outside the scope of VAT, but will be zero rated so you invoice with VAT, but at a rate of 0%.