Thinking of Running Your UK Company from Abroad? Here’s What You Need to Know

With more business owners working remotely, it’s no surprise that some are choosing to move somewhere sunny while still running their UK-based companies. But if you’re thinking about doing this, it’s important to understand how it could affect your tax situation. 

Does Moving Abroad Change Where Your Company Pays Tax? 

Even if your company is set up in the UK, it might be seen as based somewhere else if you (as the director) move and start running things from another country. This means the company could end up being taxed in that country instead of (or as well as) the UK. 

There are agreements between countries (called double tax treaties) to decide which country gets to tax the company. Usually, it comes down to where the key decisions are being made. 

What Are the Tax Consequences? 

If your company is no longer considered a UK tax resident: 

• You’ll need to tell HMRC in advance. 

• The company may be treated as if it’s stopping business in the UK, which can trigger tax bills on things like assets or property. 

• Any UK property it owns could still be taxed here. 

• There are ways to spread any tax payments over several years if you’re moving to a country in the EU or EEA. 

In Short: Plan Ahead  

Moving abroad and working remotely can be a great lifestyle choice, but it brings tax changes that you’ll need to deal with. The earlier you seek advice, the smoother your move will be — helping you avoid surprises from HMRC or the tax authorities in the country where you’ll be living.

While every care and attention has been taken to ensure the accuracy of the information contained in this publication, it has been prepared in general terms and does not constitute advice. It should only be regarded as general guidelines. The information may change over time and is not a substitute for professional advice. Users are encouraged to verify the information independently or consult one of our qualified professionals at EOACC LTD for specific guidance. Any liabilities or losses arising, or enquiries raised by HM Revenue and Customs or any other parties, due to the taking or refraining of actions referred to in this publication are not the responsibility of EOACC LTD.