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Posted Tue, 12 Mar 2024 19:23:09 GMT by AB2121
Hello HMRC, I am a UK national and a consultant living in England providing design services through my own Ltd company (company registered in UK since 2011, vat registered, 1 person company, I’m the director). I have been offered a fully remote outside IR35 contract that will be executed by me via my company, beginning April 2024. I was thinking of using the digital nomad visas offered by tax free countries esp. Dubai, for maybe upto 2 FY. If I were to move to Dubai, I would have no ties with the UK except for my company. I wanted to understand the following: 1. Will I be non-resident in UK for purpose of taxation, given that I will have no family/home ties with UK, be in UK for less than 30 days; however, all the work I will be doing from Dubai (min 40 hrs/week), will be for my UK company, which in turn is working for a UK client. Does my being the company director change anything, like number of days for UK ties? What is the number of days allowed in UK to be non-resident, as a company director? Is it still 16 days for automatic ties test or reduces to 0? What do I have to do be non-resident as a company director of a UK company working for my company? 2. If I’m classed as non-resident, will the dividends/ salary drawn by me from my company be taxable in UK? If no, then do I need to declare them on my self-assessment? 3. What happens to NI? Employers NI has to be paid by my company? 4. So far I have understood that upon leaving I will need to complete a P85 form and upon becoming a resident of Dubai apply for a NT tax code. Is that correct? Anything else I need to do? 5. I have a flat that I will rent out, rental income will be filed in my self-assessment & taxed in UK. My company will pay corporation tax, vat as usual. Correct? 6. Income from stocks (companies in USA, EU, UK etc) held in my UK demat account: dividends/Capital gains as well as any UK interest income will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 7. I have accounts in India (I'm born in India & I think domiciled in India), Income from stocks (companies in India) held in my India demat account: dividends/Capital gains as well as any interest income earned in India will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 8. Does anything change if I’m back in 2 FY? HMRC website, talks about temporary non-residents, if back in less than 5 FY. Would that mean that tax on salary/dividends from my UK company would have to be paid before returning? What about other income heads: stocks in UK demat account? I assume that foreign income i.e. earned in India would still be exempt? I have tried to get information from two accountants but have received conflicting advice. According to my accountant, I will be non-resident & hence except rental income in UK, everything else is outside UK tax. However, a colleague in similar position has been advised by his accountant, that the salary/dividend from my UK company would be taxable in UK, as the work is done through a UK company & as I’m the director of the company, even one day in the UK puts me in UK tax range, he wasn’t sure what happens if 0 days are spent in UK! I would be very grateful, if HMRC could provide an answer to this, as I’m sure there must be many in my situation & there is confusing / conflicting advice available.
Posted Fri, 19 Apr 2024 11:03:57 GMT by HMRC Admin 20
Hi AB2121,
A P85 is used to inform HMRC that you, an individual, are leaving the UK.  
Your questions appear to relate to tax planning which we cannot answer in this forum.  
Companies and individuals are required to 'self-assess' their tax affairs, and HMRC guidance which can be found at GOV.UK is available to help with this. This includes assessing whether a company or individual is within the charge to UK tax.
It is your/your accountants responsibility to make these decisions, using the guidance available and being in possession of the full facts. 
If you still need help after using our guidance,  you can write to Corporation Tax Services, including your personal details and those of your company. 
Thank you.

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