Small Biz set up in uk advice

POM

Hi, I would like to pay my taxes in the uk and stamp. I reside in Spain would like to strat up as self employed and register my business in the uk. I would be dealing with suppliers in the UK & Europe. can I d o this? and if so is it complicated?

Premier_2

POM wrote: »

Hi, I would like to pay my taxes in the uk and stamp. I reside in Spain would like to strat up as self employed and register my business in the uk. I would be dealing with suppliers in the UK & Europe. can I d o this? and if so is it complicated?

If the business operates from the UK, you should indeed be paying UK tax.
Where you purchase your supplies from is not important in this respect.

But, if you say you are self employed, I'm not sure how you are planning to run a UK business whilst living in Spain.

Either come back to the UK, or the Spanish authorities will be after you for the tax if you are operating your business in their country.

POM

Is it not ok to run your business from anywhere as long as you pay the taxes in the country it is set up in? why would the spanish authorities have any hold on me as long as i show I am paying my full taxes somewhere?

lcharm

If you set up a business outside of the UK but still in the EU and do business with the UK that's known as internaitonal trade justb like importing into the UK. You do not need to pay tax to the UK unless you reach a certain threshhold for VAT and then you need to register for VAT in the UK. That's if you are setting up a company.

But corporation tax, local VAT and income tax is down to the country you are set up in.

If you are a sole trader and a UK resident then you would need to pay UK income tax on your earnings, if you are a Spansih resident it's their income tax.

You need to get advice from an accountant that understands tax laws between countries.

Premier_2

POM wrote: »

Is it not ok to run your business from anywhere as long as you pay the taxes in the country it is set up in? why would the spanish authorities have any hold on me as long as i show I am paying my full taxes somewhere?

If it were that simple, we'd all have our businesses set up in the Bahamas! :cool:

CleanShirt

For a bank account you also need to reside in the UK. Although with a Ltd comp only one director would have to be a UK resident.

POM

Thanks everybody!