Readers questions: Can I be a limited company if I am a not a UK tax resident? I left the UK 7 years ago and live in Spain. I have been asked by an agency who I will be working overseas for, to supply invoices for work done. Can I issue an invoice to this agency without being registered as a limited company?
Expert answer: The expert was Charles Daw, Sales Director at 6CATS International.
If you are referring to a UK Ltd Company, there would be no reason for you to use a UK Ltd Company to work overseas if you do not deem yourself a UK tax resident. Furthermore, a UK Ltd company is only a viable option, if you have a valid A1 form and you register for income tax in the country of work. If you are accepting an overseas contract from an agency and the location is not Spain or the UK, then you should be paying tax and social security in the country of work.
If you want to submit invoices to your agency as an independent worker, if the country of where you are working allows, you will need to register as self-employed, provide registration confirmation to your agency, including your VAT number. It is then up to your agency to decide whether they are happy to engage with you as a self-employed worker. It is likely they will also want you to provide confirmation of professional insurances.
As your question does not give detailed information on your country of work or contract duration, it is difficult to give a detailed and clear response. We would suggest you speak to your agency to confirm if they have a preference of how you are structured in the country of work. If not, we would suggest you speak with an international tax advisor to ensure you operate compliantly and do not leave yourself open to any risk of non-compliance, which can result in backdated tax and social security liabilities, fines and penalties.
More on ask the experts and limited company invoices.
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