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set the channel description: Everything related to UK LLP / UK LTD

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Hoping to get some advice on setting up a UK Company Me and my wife currently live in Spain and are planning to move to Northern Ireland in a couple of years. She is from Northern Ireland so we want to be closer to family while keeping our home in Spain so we can spend a few months a year here in Spain. I currently run my business through a Wyoming LLC and I want to setup a business in The UK to make things easier for our future mortgage application. I spoke to an accountant in Northern Ireland and he said that it was advisable to setup a UK company to have a proof of income during my mortgage application. He advised to setup a UK company asap so that I have a few years of books on the UK company. I am not a UK resident, I am from The Netherlands. When we move to Northern Ireland I will apply for a visa, this process has already been in motion and I have a Visa for after Brexit. So here are my questions: ? LLP or LTD? ? How easy is it to switch the company from a NON-Resident company to a Resident company? ? UK Company owned by me, or by me and my Wyoming LLC? Or just by the Wyoming LLC? ? Is there a difference between a Northern Irish LTD/LLP and an English LTD/LLP? ? Once the company has been setup.. Can anyone recommend a good UK accountant which conducts its business over the internet? Thanks

@sterk For UK residents, it makes a lot more sense to use an LTD (NI LTD if you are based there). It?s fairly easy to move the company?s tax residency to a treaty country but won?t that cause issues with your mortgage application? I mean, if your LTD is a tax resident of Spain it won?t have any UK filings as it will only file in Spain. As for an accountant, it?s a Spanish accountant you?ll need as that is where you?ll be filing (under Spanish tax rules / regulations).

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Thanks Simon and sorry for the late reply. I am currently not filing anything in Spain, I pay my taxes in The Netherlands. Been doing it like that for years as I wanted to avoid getting sucked into the Spanish system and all its rules.

So for now I want to set up a UK (Northern Irish if possible) company as a non resident. How difficult is it so change this company to a company owned by a resident once I am living in the UK?

I?m not sure if that?s the case with NI Limited companies but for England and Wales it?s a five minutes process that can be completed online (you update the address, then let HMRC know).

Thanks.

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Hey guys, could you help finding the correct answer regarding VAT: a UK LLP with non-resident directors sells physical goods on Shopify. The inventory is imported from Japan and stored in a warehouse in Italy, which fulfills each order from the Shopify store when asked to. 1-Does the UK LLP have to register to get an Italian VAT number? 2-And does it need to register for a UK VAT number too and charge VAT on each B2C transaction within the EU? Thanks :blush:

And I forgot to ask: 4-How is the UK LLP taxed on sales to UK customers? The directors are non-resident. No place of establishment or employees or offices in the UK. Only a third-party storage supplier in Italy. Thanks!

Hi TT, Not a VAT expert but I've posted this post a while ago after researching this topic. You might find it helpful. https://freedomsurfer.slack.com/archives/C3XETKCEQ/p1601978823051600?thread_ts=1601971105.036800&cid=C3XETKCEQ

Hey @yaron.been appreciate the answer, I had already read your post actually! I think Scenario 5 could apply with Distance Selling Threshold between Italy (place of storage of the goods) and the end client?s EU location. In that case since transport is made by a third party the place of VAT would be the customers. Right? I?m not 100% positive. I?m also wondering how much the import tax from Japan to Italy is, and what?s the taxation rate for a non-resident UK LLP selling to UK customers with a place of supply in Italy.......@simon any idea?

@cutepetthings Assuming no work is performed in the UK, there will be no UK income tax due (where your customers are doesn?t matter). As for VAT, the place of supply will be Italy in your example. The current rules only apply until the end of the year, however, and the UK will be treated as non-EU starting in 2021. Unless a deal is agreed on that preserves the UK?s participation in the EU VAT system, sales to UK customers will be VAT exempt (same as sales to US customers, for example).

Thanks @simon !

Just encountered this article: https://www.ecommerceaccountants.co.uk/post/dropshipping-vat-changes-1st-january-2021?fbclid=IwAR0Z3uVE0UKLXSgRui2hXwbvq2kOx_k0aYWoM_TJg1PAc1U58MkXGGzsqXc#toc-actions-to-take-before-31-dec-2020 Seems like the HMRC is introducing new VAT regulations effective 1st of Jan 2021 which are going to be pretty problematic for dropshippers

Here is the important part: _Examples of how dropshipping VAT works from 1st Jan 2021_ _We've listed out the combinations of supply and consumer locations, so that you can see what will be relevant to your business._ _UK Suppliers to UK customers_ _*UK VAT Position*_ ? _Sales: You need to charge/collect VAT at POS - But only if your business is VAT registered. https://www.gov.uk/vat-rates_ ? _Purchases: You can reclaim the VAT on your UK VAT return - But only if the supplier is VAT registered._ _*When to Register*_ ? _UK Businesses: When your taxable turnover is above £85,000 in a rolling 12 month window_ ? _non-UK businesses: As soon as you intend to make a sale (no turnover threshold) in the UK_ _UK Suppliers to EU customers_ _*UK VAT Position*_ ? _Sales: From the 1st January 2021 these will be known as exports from the UK. Exports are zero rated for VAT - you charge 0% VAT_ ? _Purchases: You can reclaim the VAT on your UK VAT return - But only if the supplier is VAT registered._ _*When to Register*_ ? _UK Businesses: Zero rated sales count as taxable turnover, so you will still (as above section) need to register for VAT if you are making >£85,000_ ? _non-UK businesses: Since you are making a supply from the UK - You need to register straight away._ _*EU VAT Position*_ ? _*Until 30th June 2021:* VAT is due on import by the importer on record. The business does not need to register for EU VAT._ ? _*From 1st July 2021*: Similar to new UK VAT rules, EU VAT must be collected at POS at the rate local to the customer. You will need to register in at least one EU state (we suggest Ireland as their website is in English) and you will need to submit a non-union OSS return (we will post a blog article on this when more information is available)._ _UK Suppliers to Outside EU (and UK) customers_ _*UK VAT Position*_ ? _Sales: From the 1st January 2021 these will be known as exports from the UK. Exports are zero rated for VAT - you charge 0% VAT_ ? _Purchases: You can reclaim the VAT on your UK VAT return - But only if the supplier is VAT registered._ _*When to Register*_ ? _UK Businesses: Zero rated sales count as taxable turnover, so you will still (as above section) need to register for VAT if you are making >£85,000_ ? _non-UK businesses: Since you are making a supply from the UK - You need to register straight away._ _*Other considerations*_ ? _Depending on the country of arrival there may be sales tax considerations in that jurisdiction. You will need to speak with a local expert to determine this._ _EU Suppliers to UK customers_ _*UK VAT Position*_ ? _Sales: From the 1st January 2021 you must collect/charge VAT on these transactions at POS._ ? _Purchases: You cannot reclaim VAT from EU suppliers on your UK VAT return._ _*When to Register*_ ? _All businesses (including UK businesses) making these transactions must register from 1st January 2021_ _*EU VAT Position*_ ? _Before 30th June 2021: You are making a local EU supply but are exporting it - So will need to register in the each EU country, reclaim the VAT on that return and then charge 0% EU VAT._ ? _From 1st July 2021: You are making a local EU supply but are exporting it - Same as above however you only need to register in one EU country and can submit OSS return._ _EU Suppliers to EU customers_ _*UK VAT Position*_ ? _No UK VAT is due_ _*When to Register*_ ? _No UK VAT is due - No need to register for UK VAT regardless of this turnover_ _*EU VAT Position*_ ? _Before 30th June 2021: Complicated and the position will depend on various factors. This could involve registration in multiple jurisdictions. https://www.simplyvat.com/?ref=ecommerce_ ? _From 1st July 2021: Less complicated as you will be able to file OSS returns, so should only require one EU VAT registration._ _EU Suppliers to non-EU and non-UK customers_ _*UK VAT Position*_ ? _No UK VAT is due_ _*When to Register*_ ? _No UK VAT is due - No need to register for UK VAT regardless of this turnover_ _*EU VAT Position*_

? _Before 30th June 2021: You are making a suppler in the country that the goods are being shipped from. Goods are being exported so will be zero rated. This could involve registration in multiple jurisdictions. https://www.simplyvat.com/?ref=ecommerce_ ? _From 1st July 2021: Less complicated as you will be able to file OSS returns, so should only require one EU VAT registration._ _Outside EU (and UK) Suppliers to UK customers_ _*UK VAT Position*_ ? _Sales: From the 1st January 2021 you must collect/charge VAT on these transactions at POS._ ? _Purchases: There will be no UK VAT to reclaim_ _*When to Register*_ ? _All businesses (including UK businesses) making these transactions must register from 1st January 2021_ _Outside EU (and UK) Suppliers to EU Customers_ _*UK VAT Position*_ ? _No UK VAT is due_ _*When to Register*_ ? _No UK VAT is due - No need to register for UK VAT regardless of this turnover_ _*EU VAT Position*_ ? _*Until 30th June 2021:* VAT is due on import by the importer on record. The business does not need to register for EU VAT._ ? _*From 1st July 2021*: Similar to new UK VAT rules, EU VAT must be collected at POS at the rate local to the customer. You will need to register in at least one EU state (we suggest Ireland as their website is in English) and you will need to submit a non-union OSS return (we will post a blog article on this when more information is available)._ _Outside EU (and UK) Suppliers to Outside EU (and UK) Customers_ _*UK VAT Position*_ ? _No UK VAT is due_ _*When to Register*_ ? _No UK VAT is due - No need to register for UK VAT regardless of this turnover_ _*Other considerations*_ ? _Depending on the country of arrival there may be sales tax considerations in that jurisdiction. You will need to speak with a local expert to determine this._

@yaron.been This change is for all Europe (UK / EU / EEA) and was announced a while ago. In short, Amazon and similar platforms will now be required to collect VAT for all European sales. Sellers from outside Europe selling on such platforms will no longer have to deal with VAT nor will their customers.

It?s a positive change as it will reduce delays at borders and remove the risk that buyers would receive an import VAT invoice with their delivery

Do note that it only applies for products worth less than 135£ / 150?

What are the implications for ecommerce store owners selling via Shopify/Woo etc?

@yaron.been Technically speaking, if you sell products worth under 135£ / 150? to European customers you?ll have to collect VAT on those orders. In practice, a loophole was left in the new rules which means that if you do not comply your customers will get charged import VAT the same way they are now.

Thank you @simon Can you elaborate regarding the loophole or refer me to somewhere I can read more about this loophole? I've gone through the link you've attached but not sure yet regarding the loophole

Hi All, I have gotten stuck setting up a remote company's bank account for UK Revolut Banking. Revolut wants a proof of address of the director (I am not living in the UK anymore) or proof of operating address for the company. Proof of address requirements are in the attached screenshot. I got a virtual office for receiving mail but this was not acceptable to them. Does anyone have good experience setting up a business banking account remotely for a UK entity ?

@yaron.been In short, they will keep the current system (with improved customs tracking / processing) as a backup to the new system (because they know it will be impossible to enforce the new rules outside the EU, except perhaps for large companies).

@rubenwolff Can you provide them with an overseas proof of address? Revolut usually accepts proofs of addresses from all EEA countries.

Potentially, I have a rental contract in Germany. But I am making sure to not become a German tax resident so i'll be moving to the ukraine next month. So potentially it could work but sounds a bit fishy

And people always mention the UK as being a place where you can setup a remote company really without any residence so i'm trying to find that path totally remote path

TransferWise is easier to work with, they usually ask for fewer documents (and they are fine with non-EEA residents so a proof of address from Ukraine would work).

Thanks for the TIP I will try with them and report back.

Thank @simon

Has anyone registered for UK VAT yet with a LLP or LTD?

Has HMRC tried to ask you backdated VAT on previous activity?

Hello @simon I received a mail saying that my company has been registered. When I login to Freedom surfer website page for my company details, it says "I am currently putting the finishing touches on this page, come back in a few days to check it out!". How can I access my company documents? Thanks in advance

@guillaume.hucheloup If you try again now it should work.

@simon just refreshed and logged, still same page

Maybe you can send me the documents via email ?

I?ve sent you a link via a private message

@simon can a UK holding company that will not receive any dividends from subsidiaries be dormant?

@marziovit Sure

Can be considered dormant even if there are branches overseas that are trading but never remitting profits?

Sudsidiaries are different entities while branches are technically the same company hence the question

Is it a UK tax resident? If so, it will have to report branch profits / can?t file dormant in such a case.

The UK limited is tax resident, yes. Will it have to report branch profits even if branches are using branch exemption?

Why have you asked if it was UK tax resident?

Because if you run the company from a treaty country, you can claim treaty non-resident status and that exempts the company from all HMRC filings.

I presume in this case the UK resident director will have to move to the treaty country, right?

Yes, the company has to be managed from the treaty country. A popular use of this rule is Cyprus (you register a UK LTD, move its residency to Cyprus where it only pays 12.5%, the resident director pays no personal income tax on dividends and only needs to spend 60 days / year to maintain tax residency). To answer your question about the branch exemption, profits have to be reported on form CT600B. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/420734/CT600B_2015.pdf

Yeah i never completely understood this setup. For example what will happen if the UK LTD will sell to UK customers? Still no HMRC filings?

Still no HMRC filings. For income / corporation tax purposes, the location of the customers almost never matter (it only does in some cases for VAT purposes)

The only cost is the UK registered address that could be a anytime mailbox, correct?

Correct, and you must maintain the company active with Companies House.

What do you mean by ?maintaining company active??

File the confirmation statement, pay the annual fee etc

@simon can a UK LTD with a UK resident shareholder that?s treaty resident in Cyprus be considered a CFC for HMRC if a Cyprus resident director is working for the company?

@marziovit Yes, it could be deemed a CFC in some circumstances. Here?s the exemptions: https://www.gov.uk/hmrc-internal-manuals/international-manual/intm224000

And in case you are wondering, the exempt countries: https://www.gov.uk/hmrc-internal-manuals/international-manual/intm254580

Obviously Cyprus isn't in the excluded countries list and the tax rate is less than 75%

How are treated in UK a US LLC and a Canada LLP? Are both considered opaque?

@marziovit A US LLC can be treated either as a separate entity or as a disregarded entity. An LLP is treated as an LLP.

A US LLC to be treated as a separate entity it has to be elected as a C-corp or it still can be a LLC?

@marziovit A US LLC is essentially a flexible entity, it can elect be treated as a corporation (c-corp) for tax purposes in the US in which case it will also be treated as such in the UK or it can elect to be treated as a disregarded entity in the US in which case it will be transparent in the UK as well. A US LLC could also elect to be treated as a partnership, a non-profit etc.

Simon, I remember you used a UK LLP some time ago with the estonian OU as a member. Could you keep income sheltered in the LLP or you have to immediately attribute the OU percentage of the income to be taxed?

You can?t retain earnings in an LLP, profits (or losses) are attributed every year to the partners.

What if the earnings were made through a LLP branch? Couldn?t profits be kept indefinitely in the branch? Think about those countries that impose a branch remittance tax to push companies to keep profits in the country.

@marziovit That will depend on the tax treaty in place.

@simon Do you mean the tax treaty between the branch's country and shareholder's residency country or branch's country and company residency country?

I think i found the answer under the "double taxation relief" section: https://www.gov.uk/hmrc-internal-manuals/partnership-manual/pm131540

@simon back to the treaty non resident topic. The UK LTD to be treaty non resident has to register a PE in the treaty country. You do business in the treaty country through the PE. Can the UK LTD still open a UK bank account even if it?s treaty non resident or is it better to completely cut any ties with UK?

@marziovit You should continue using UK banking, payment processing etc. That?s the whole point of this setup (to get all the benefits of running a UK company but without the tax implications).

The treaty non-resident status is only for tax purposes, for every other purposes the company is a full UK company.

To be able to use Stripe UK you need to have a bank account. If you are non uk resident your options are limited to Transferwise, Fire or there?s still hope to get a real bank account?

You can open a real UK bank account but for that you must travel to the UK and do it in person (except under limited circumstances). You can link Stripe to TransferWise though, there?s no need for a real bank account for that.

Do you think it could be easier to open a real bank account with a UK resident shareholder?

For sure, but it?s not that hard either with no UK owners (with HSBC at least)

(Silly question) I've spoken about before but can't get my head around it. What if a UK LLP is owned 100% by a US LLC. And the US LLC is owned by the same LLP. Wouldn't this create an infinite loop as they're both transparent entities? Where would the tax liability be?

I cannot imagine a structure like this could be legal and if authorities digging, they will find you as the owner of both companies where you need to explain yourself. The tax liability should be your country of residency and also depends if you are doing business within the US or UK. I cannot see any advantages having such a structure. (Just my opinion, no advice)

Looking for advice. We have a UK LLP with 2 partners. Both members are non-residents of the UK and the UK LLP has no tax obligation. We are providing consulting services to a company where we are helping manage their cryptocurrency trading portfolio. We are going to be paid monthly *in BTC* as a percentage of the profits for that month. The other company's corporate account on the exchange (for e.g. Binance) is either an Estonian OU or a Czech company (not sure). I am wondering what the best way to set this up is, to avoid any additional reporting, paperwork and tax burden for either the partners or the UK LLP. ? Create a business/corporate account on an exchange, for e.g. Binance, to receive the BTC, then send the BTC to our personal wallets? ? Accept the profit split of BTC directly into our personal wallets? ? Get the business we consult to, to pay us in USD instead, at the BTCUSD rate (or agreed upon rate)? ? Use some type of conversion service or payment processer like Bitpay to accept a payment in BTC? I'm thinking the easiest where I no there is no additional issues is getting them to pay us in USD instead, but I'm not sure if that is a possibility.

Hi guys! Do you charge VAT as a UK LLP when you sell to EU based customers/companies? Just found this that lays out we need to charge based on the location of client: https://www.chargebee.com/resources/guides/understanding-eu-vat-guide/

Can anyone confirm?

@burrup.lambert Hi, I have exactly the same setup as you. UK LLP, owners not based in UK, consulting for an israël-based VC firm for portfolio management. You're the first person I come across with the exact same setup than me, enchanté. As I have no definitive answer to what is best for you, I will simply let you know how I proceed : I also get paid a percent of the profit made thanks to my expertise, although my payouts are every quarter. I have a designated wallet on which they send me USDC, and I invoice them every quarter this amount for my accounting, even if I have no reporting duty. I then transfer whatever funds I need from this wallet onto my personal bank accounts. Of course everything would be easier if paid in USD but as you know, people working in crypto prefer to pay in crypto and I do understand them. The only question that I have not answered is what happens to the tax liability this firm is supposed to pay on the % of gains that they send me. E.G. They have a portfolio of 100K, turned into 200K next quarter, I take 20% of the profit, they are left with 180K but they haven't paid any crypto gains tax on these 20K that they sent me. As far as I am concerned, that is their obligation and I shouldn't be worried about it, as I have tax liabilities for whatever amount I invoice them, I shouldn't be responsible to pay their capital gains. I hope this was clear enough, don't hesitate to DM me if you wish to connect

@felix If you sell automated electronic services, you need to charge VAT in the buyer?s country regardless of where your company is located (EU, UK, Cayman, HK etc). Normal VAT rules do not apply for this category.

Thank you Simon. This only applies to automated electronic services/SaaS?

Yes, for ?regular? services the place of supply for VAT purposes is where the service is actually performed (so no VAT if you are working from outside the EU).

Just reading up on it. Didn?t know that. As the UK is not part of the EU anymore I assume Estonia is the next best jurisdiction to sell to EU customer SaaS, am I right?

No taxes if income is sourced from abroad and located within the EU and therefore no need to register for VAT in each of the EU countries

https://www.freedomsurfer.com/estonian-business/ Amazing article, Simon!

DMing @guillaume.hucheloup!

Hi All, I know this might sound like a stupid question but I'm not quite sure I understand how does the UK LLP accounting look like under a Foreign company. I have multiple businesses, most are e-commerce businesses that are currently connected to my Israeli company. I send out all invoices, expenses, income, etc on a monthly basis to my CPA and she handles taxes, VAT, salaries etc. Assuming I open a UK LLP under the Israeli company, how would the accounting look like? 1)Will everything be handled under the UK entity and then I'll just send the bottom line to the Israeli CPA? 2)Those of you who have a UK LLP under foreign companies- do you have bookkeepers and accountants in both UK and the country where your holdings company is registered? 3)All in all, how much does having this sort of structure complicate your business from an operational perspective? Thank you!

Hi @simon as a non uk resident is it possible to pay a director salary to yourself running a UK LLP? And would that be exempt from tax in UK?

@brian.ppcmanagement Assuming no work is performed while in the UK, you?ll pay no UK tax with an LLP (regardless of whether you pay yourself a salary, distribute profits directly etc). You?ll likely be taxed in your country of residence, however.

@simon thanks for clarifying! Salary payments are interesting since they can be distributed monthly. I assume that distributed profits can only be payed out annualy under LLP construction?

@brian.ppcmanagement you can distribute profits as often as you wish, even daily, if that is allowed by the partnership agreement (the agreement between the partners). The combined distributions are reported once a year.

Thank you!

@simon what if no business activity has been performed in UK but I have taken some money from UK clients.

Hi All, how easy is it to setup Revolut and Transferwise bank accounts for remote UK LLPs?

Selling to UK clients won?t create a UK tax liability in and of itself

TransferWise, very easy, no issues, no hard questions.

Revolut is harder, they ask for more documentation and usually insist that at least one of the partners be based in the UK / EU.

+1. They insisted to have someone based in Europe which was a no-go for us

Alright thanks!

Gotcha, thanks!

Question reg. VAT and UK LLP: ? I sell consultancy services to clients in EU countries: Denmark and Lithuania . How should VAT be handled here? ? I sell consultancy services to USA clients . How should VAT be handled here? ? I will recieve affiliate marketing income from USA company. Is affiliate marketing income exempt from VAT?

@brian.ppcmanagement VAT is based on where services are performed, where the company is registered doesn?t really matter. If you work from France, for example, you should charge French VAT to your EU clients as France is the place of supply. If you usually work from France but travel to Denmark to perform work for a Danish client, you should charge Danish VAT as Denmark is the place of supply etc. VAT doesn?t apply to non-EU sales (for example, US sales).

Thank you

Has anyone tried to open a bank account remotely at HSBC or Barclays in these covid times. If ever there were a good excuse not to travel to UK would be now

@brian.ppcmanagement HSBC isn?t accepting new applications at the moment (due to covid-related staff shortages, from what I?ve heard). Don?t know about Barclays but I would imagine it?s not possible, they were pretty hard to work with before covid.

I chekced Barclays, they only accept applications from prior customers

I?ve read that all profit made by an LLP must be distributed in the same financial year. Is this true for all LLP?s? (UK, Canada, and so on?)

main street bank acc for a UK LLP: did anyone manage to open one remotely? Would really help to not only rely on transferwise for the whole business

@marziovit Profits in transparent entities are deemed distributed in the fiscal year they arise in. This goes for LLPs, LPs, disregarded LLCs etc.

@frederic.scheffer If you?ve lived in the UK in the past, you should be able to use your existing credit file / banking records there to verify your ID online with most banks. Otherwise I?m not aware that it?s possible at the moment (many banks have stopped accepting applications due to staffing issues).

@simon ok but what if you are tax resident in a country like Belgium (or even France if i remember correctly) where LLP's are not treated like transparent entities but like companies so profits are not deemed distributed in the fiscal year, partners are taxed only when they receive the money (like a company distribution). Could you potentially defer distributions indefinitely until you move tax residency and cash out in a territorial tax country?

@marziovit The deemed distribution occurs in the country where the business is registered. If the business has a foreign PE, local rules will apply for that PE (so yes, you could defer distributions if it?s allowed in that country).

@marziovit You would be obliged to pay corporate tax on the profits for each fiscal year if you are tax resident in Belgium or France, since the LLP would be treated the same way as if you would have had a local company.

@je are we talking about the same thing? I?m talking about personal income tax, not corporate tax. You obviously pay corporate tax if a foreign LLP has a PE in Belgium or France. I?m talking about not paying personal income taxes after corporate tax by deferring the profits distribution indefinitely.

Ah, ok! In that case, yes, deferring personal income tax by deferring the profits distribution should work (as far as I know).

"As far as Belgian partners are concerned, the UK LLP will be treated tax transparent: Belgian partners are immediately taxed on their proportionate part in the profits of the partnership, without awaiting any distribution of the profits from the partnership to the partners; foreign losses of the LLP can be deducted from the partners? taxable income; the taxable income always qualifies as a profit of the partner (instead of a dividend) without making any difference between a remuneration of the Belgian partners for their activities in Belgium and their proportionate part in the profits of the partnership;"

Seems like the LLP would be treated like a transparent entity in Belgium after all.

I.e. it would count as personal income.

(unless you hold the LLP through another company)

You might want to set up a holding company in Estonia, if you want to defer profits distribution indefinitely.

@je Thanks man! This is exactly the opposite of what the OECD tax convention to partnerships says! https://read.oecd-ilibrary.org/taxation/the-application-of-the-oecd-model-tax-convention-to-partnerships_9789264173316-en#page80

I wonder then how other countries treat the LLP according to that new resource. Belgium was ?chapter 6?, is there an index with all the other chapters that i can check!

Hey guys, do you know if it's possible that a foreign company can own a UK LLP, or atleast be partnered into a LLP? Thanks.

@info778 Yes, there are no restrictions on who can own an LLP.

Hi guys! Did you apply for a TAX ID with your UK LLP? One of our clients asks us to add VAT to the invoice, but as far as I know the UK LLP doesn?t charge any VAT, right

?

Tax ID for a UK LLP is the person ID for the Partner involved.. This structure is taxed at personal level. For VAT you can apply for this even if you don't meet the minimum mandatory turnover level. Then you can add VAT but will have monthly reports and adjustments to make online for VAT collected and any VAT you have paid.. Its Extra paperwork. I am sure there are now many good software and billing which will take the headache out from this aspect.. :thumbsup:

Tbh, I have no interest at all to introduce any additional paper work in the process. Both partners are foreign entities. Are they required to get a tax ID in the UK?

AFAIK, yes, both partners need a personal UTR number, as well as the partnership.

VAT is needed when turnover hit 85K GBP

A question about companies house registry. Under the tab people > persons with significant control is it true that if you own less than 25% of shares of a LTD you are not showed there?

Hi All - has anyone here re-domiciled a UK registered business to Cyprus? Would love to hear about your experience and any recommended agents for the process :pray:

Hey LLPeople, quick question :point_down: My situation : ? I have a UK LLP ? I have a UK Business Paypal account that I linked to my Transferwise Pro UK infos (in GBP) ? I receive mainly payments in Euros My problem : It seems I can?t add my Transferwise Pro Euro account infos to transfer Euros directly but _i*nstead_ have to* have Paypal convert it to GPB (with their shitty rate) to my Transferwise Pro GBP account? :point_right: Am I missing something ?

have you tried this? https://support.webinterpret.com/hc/en-us/articles/203728826-How-to-set-up-your-PayPal-to-accept-International-currencies-PayPal-interface-#:~:text=Log%20in%20to%20your%20PayPal%20account%2C%20click%20on%20Wallet%2C%20then,in%20currencies%20of%20your%20choice.

Thanks @umesh.desai ! I have multiple currencies set up but I?m talking more about wiring to money to my actual bank account..

looks like the answer is no. Paypal seems to limit you to banks in the country the account was setup. So you'd need to an EU paypal account.

although ... while this guy says you cannot, he does have a sidebar where he says he contacted paypal support and they did it for him using their backoffice tools https://jeangalea.com/withdrawing-money-from-paypal-for-non-us-accounts/

```Note that in April 2020 I was able to add a USD account to my PayPal business account, so there seems to be a way to get a non-Euro bank account added. I had to ask PayPal to add it manually, as the link in the dashboard did not let me do it. I will be testing a few withdrawals with this method and will update the section below if I see that it becomes more advantageous to withdraw to the USD bank account instead of the debit card.```

Hum ok, thanks a lot man ! @simon une piste ?

We have the same issue, same setup.

If you have a UK Paypal account and receive payments in Euro the only way to get those Euro out of the UK Paypal account is to let Paypal convert them to GBP and their crap rate.

We were told by support a Paypal Ireland account would be able to withdraw in Euro but not sure if they accept a UK LLP with Brexit etc etc.

We just removed Paypal as a payment method :sweat_smile:.

Ouh damn @burrup.lambert !

Paypal should find ways to compete with Transferwsie rather than screwing us haha

It?s pretty much hit and miss with PayPal. Customer support can add US accounts but they rarely seem to do so nowadays. Same with changing debit card currencies, this used to work reliably but it seems that most cards aren?t supported anymore (for withdrawals). I guess workarounds could include using services like 2co in EUR / USD

Hum ok thanks

Support used to be able to add US accounts but I have called them like 10 times for a new account and they say they don't do it anymore. Might just be unlucky with the stats :smile: always worth a try calling over and over again :slightly_smiling_face:

Does anyone here run a UK LLP while "living" in Portugal under the NHR? I am not sure how Portugal categorizes the income from the UK LLP. They see LLC income as "foreign-sourced dividend", which is tax-free. But I'm not sure about the UK LLP...

You shouldn't be using a LLP under the NHR because LLP income is seen as a salary and it's not tax free.

@marziovit Unless you route profits through a holding company, assuming said profits aren?t Portuguese sourced (in which case they would be liable to tax no matter what).

For example a LLP owned by a US LLC?

Using a US LLC for that is a bit of a grey area (as it isn?t a corporation, unless you elect for it to be treated as such, but is often recognised as a corporation by other countries regardless).

Where would you setup a holding then? HK?

That depends on where the business is run from / business activities but I?m not a fan of the HK LTD (too expensive and troublesome).

@simon I was just in contact with a Portuguese lawyer, he said that US LLC income is categorized as "foreign-sourced dividends". And that one can live all year round in Portugal. And according to them, it's only when having a client business, where the work is done in Portugal that one has to register as a self-employed.

I disabled Paypal, too bad for them haha

Does anyone has a recommendation for a bank account for a UK LLP. We have TransferWise, but the limit annoys me. Revolut is not an option. Thinking about going with HSBC or Barclays, but personally try to avoid HSBC like the plague. Any tips?

Tide?

@felix what limit?

The limit that you need to pay negative interest rate above 70k in funds

@mich_cello never hear about Tide. Thank you for suggesting.

Anyone has experience with Barclays or HSBC in the UK?

@felix you?re welcome. I inquiried one year ago to open a HSBC account for my former UK LTD from remote. Apparently it was possible but you have to verify yourself in a HSBC branch where you are (if there are none, you can?t). Any way you can try to call them.

To can try Airwalllex they accept LLP and have very clear details online as well as fast support when I had questions to ask. I am about to complete the account verification tomorrow so I can share more with everyone what the experience I have. So far it's positive and clear information.

Where do we get a LEI for a UK LLP?

Great, thank you for sharing Hanif!

Thanks Mike. I have HSBC close by at my place and will visit them and ask them to open an account for me in the UK

Out of curiosity. What do you present as the UBO (Ultimate Beneficial Owner). If the LLP is owned by two LLCs that are owned by a Belize company, etc. Or can you simply open the bank account as a director in the name of the company without providing all these sensitive information?

@felix The UBO usually has to be a natural person, so in your example it would be the owner of the Belize company

Ok, thank you. So there is no way around this..

What does e.g. Nevis trust owners do? I doubt that if you choose that kind of a vehicle that you are keen about letting banks know (or anyone else) that you own it..

Using a trust won?t protect you from this (having to reveal the details of the UBOs), at least not if you want to bank / trade in OECD / developed countries.

Thank you as always for the input Simon. Really appreciate it.

Hi guys, My partner and I own a UK LLP. Neither of us are resident in the UK (We are French). We are planing to sell on Amazon in UK first, then Europe. I?m trying to register for UK VAT by myself and I?m not sure what should I reply to this question (see picture): Should I consider our head office is outside of UK, even if our registered LLP Address is in UK ? Should I consider all our business outside the UK as we don?t have NEXUS in UK.

@simon I am being asked for electricity bill as proof of address for opening a brokerage account through UK LLP..

How can I do that for the registered address of the UK LLP?

@one.more.ravi You can use the letter HMRC mails a few weeks after the registration. It?s addressed to the LLP, features the registered address and is dated

Is that something I am yet to recieve?

@simon does that work for payment processors asking for a utility bill?

Yes, it will be uploaded to your account when it arrives in the mail at the registered address

@benjamin It can work but not always. Shopify Payments, for example, wants to see an actual utility bill and will not usually accept other proofs of address

@felix sorry, any idea

If you sell in EU with a UK LLP do you need EU VAT?

@marziovit It depends on whether your sales are VAT-liable in the EU (for example, services performed in the EU, automated electronic services etc).

For example selling digital courses?

That will usually be deemed an automated electronic service and VAT liable (assuming the courses are a purchase and download type deal).

How easy is it to get EU VAT for a UK LLP?

It depends on the countries where you need to register (the process is the same for UK companies as it is for companies registered elsewhere). In any cases, you can register using Avalara or similar.

What's the advantage of charging customers through a UK LLP over a US-WY LLC or CA LLP?

Lower Stripe fees

I didn't know this. Is this true when serving US customers as well?

For US customers it is the same (=2.9%). For everyone outside of the US you save money on every transaction.

Awesome, thank you Felix.

Hey team, to validate my Amazon US account I have to fill out the ?tax interview? in Seller Central. I?m not sure what to choose. We (2 French partners) have a UK LLP. Partnership or Disregarded entity?

Partnership

Thanks Marzio, all these taxes things are really more complicated than I thought.

Any recommendation for UK Mobile Phone number, whether it is virtual or not? http://tide.co is requesting a UK Mobile number to open the account (I?m based in Asia)

Thanks!

I'm based in Asia too, and Simon told me about Zadarma. What service did you go for?

^ used for UK landline for 3 years, can pair with macOS and iPhone apps

@mc is that for a Uk llp bank acc?

There is also https://www.giffgaff.com/freesim-international wich is a real sim card number, and they can ship your sim anywhere in the world.

@frederic.scheffer Yes it is. http://Tide.co is asking for a phone in the UK. Now I see that they are also asking for a residential address in the UK (I?m in Asia.)

Phone: try "onoff"

Residential address for yourself or the company?

@frederic.scheffer Just realized that Tide, Revolut, Monese, Bunq, Novo, Monzo, Starling? won?t accept me as I am based in Asia. Some do not accept LLPs, only Sole traders and LTDs. Pretty much only have Wise left, and I?ve got issues sending money through SWIFT to finish verification (as the bank red flags Wise with AML regulations.) I?ll have to renew my old credit card to finish verification with Wise. Not even sure if I can get it renewed and sent here.

Here are more options for you: http://fire.com, http://Airwallex.com and http://intergiro.com

Let us know how it goes with those options!

@marziovit *Airwallex* are asking for plenty of documents (proof of transactions, contracts with clients, bills, UK driving license, business lease/bill from the registered address.) Basically, you need to be in operation and have supporting documents. *Fire* does not handle LLPs (limited companies, unincorporated entities and sole traders only, non-EU/UK residents can apply on request only, that is, if they have the business type they handle). *Intergiro* still waiting for their feedback, but I assume it won?t work as even when I tried to get SMS & calls from their system while registering, UK and China phone numbers did not receive anything.

Unfortunately I don?t know other options at this time

@mc if you would be based in EEA would Revolut accept you? I?m thinking why don?t you move temporary to a low tax EU country, open the account while there snd then change the address?

very tricky indeed. US LLC (still waiting for the EIN, sent via fax more than a month ago). Thought about http://Neat.hk as a Plan C. Thailand or Japan as Plan D when the borders reopen, but that could take quite a while. Singapore is just too complicated and costly for non-residents. Will check out Malaysia just in case.

*Paypal UK* update: residential UK address is needed to open account.

For PayPal you can use the company address, they will eventually ask you to verify it and then you?ll be allowed to enter an international address. It?s frustrating that they haven?t updated their registration forms in years but this workaround works well.

Thanks. It worked like a ?hot knife cutting through butter.?

@lnlrz Dingtone. I get SMS from the UK without issues.

Wow that's pretty convenient and cheap, too. Thanks

Hi guys, I am new in the business world, I just finish the setup of my UK LLP, I am Thai Resident, and I need to get the business Transferwise debit card to start to pay with it for my business payments, should I request the debit card to be sent to London address or my Thai address? How does it works for me to get the card/or the card info if I send the debit card to the business London address? Would you recommend me to open also an other online bank account somewhere else as well for the business?

Good luck opening a bank account for a LLP without being UK resident. Looks like the only option is Wise

@arommelaere You can have the card mailed to the LLP registered address, I?ll forward it to you (I don?t think it?s possible to have it sent directly to Thailand).

I just checked: intergiro (Swedish) accepts non-residents with a UK LLP

Awesome!

I'm trying intergiro, will let you know

Hey guys, so I just read this article on selling digital goods in the EU: https://www.quaderno.io/resources/eu-vat-guide It seems comprehensive enough, but I find the advice conflicting to what I'm reading in nomad circles (even in FS). If you're a small "infopreneur", should you really register for VAT? Heck, just thinking about calculating VAT for each customer depending on the country could seriously hurt your brain For context, I'm a UK LLP owner based in the Philippines

I'm wondering if that guide is reliable because clearly they have an incentive to make you believe that you _have to_ either manually calculate EU VAT yourself OR ? "oddly enough" ? use their service

It depends on what you sell. For regular services, there is no need to register for UK / EU VAT as long as you perform them from outside of the UK / EU. For automated electronic services, registration is mandatory regardless of where you are based as the location where your clients are based is what is taken into consideration. Automated electronic services include ebooks, hosting services, music etc (in many cases, however, platforms where such services are sold can handle VAT compliance).

Thanks ? and online courses would probably fall under that, right?

If they are automated, yes.

Seems like 2Checkout (the 2Monetize plan) is great for this ? based on what I've read so far, they act as resellers and they pay your taxes in each country you're supposed to owe. The only con is that if you're selling online courses, you have to host it yourself. ...which is not exactly that of a big deal. My other option is to go with Thinkific + Quaderno, however I think the "filing taxes" part would be quite horrendous. But maybe I'm just overthinking it. What's your opinion on this?

If you are using Wordpress there are plenty of plugins that integrate with WooCommerce, Easy Digital Downloads etc that handle all the VAT stuff for you. All you need to do is download the CSV file and submit it to HMRC and pay your VAT if any, every 3 months.

So basically you don't need 2checkout as long as you have a spreadsheet of sales tax calculations?

Hi guys- UK VAT Question. As far as I know, UK VAT is charged on the retail price excluding the shipping. So assuming I'm selling a product at £40+ Free shipping I need to pay £8 VAT. If I change the product price to £20+£20 shipping costs- will I need to pay only £4?

FI Intergiro bank accepted my UK LLP business account opening (SEPA Euro IBAN) with non-uk-resident (Thai residence), however note that they don't accept direct funds from Thailand to Intergiro account. And they processed opening faster than Transferwise (I still didn't get TW account)

Well done!

@arommelaere Good for you. I cannot receive the SMS from Intergiro (tried 2 numbers). In my case Transferwise is a catch-22: unable to verify my account (but I can probably verify Transferwise with the Intergiro account.)

I'm using Thai personal number phone for the sms verification with +66 prefix if it can help you

@arommelaere Just to clarify, did you do this remotely? Did you encounter any challenges or just straightforward stuff?

Hi @yaron.been, I did it fully remotely, I registered with the LLP name and UK address provided by freedomsurfer, then my personal thai residency address and my personal name. For phone number I used my personal Thai +66 phone number (as company phone number), it's also used for *SMS verification on every login* to the Intergiro account. I had to upload the LLP registration documents, proof of residency (Thailand residence proof AIS FIBER bill + LINN MOBILE phone bill) I described the business plan as most as possible with all the explanations for now and growth vision (I think this is the most important point, provide the most detailed explanation possible). As probable transactions countries I added the full set: UK US France Belgium, EU, basically all usual ecommerce countries + Thailand. Then got an email to request me to send an extra French ID card and zoomed passport copy (seems they were worry I would be a fake profile), they also asked me if it was ok for me that I wouldn't be allowed to deposit fund from Thailand directly, so I told I was going to use my personal EU accounts to deposit and explained the full reason why I did setup Thailand in the list. After few more email exchanges they opened the account and sent me the list of prohibited countries & businesses (so it's very clear what I can and can't do with them) and provided me the EURO SEPA IBAN account (free plan).

Thank you so much for all the details @arommelaere Appreciate it :slightly_smiling_face:

Hi guys, how do you get a proof of address from your UK business if you're not even living in the UK? 2Checkout asks for it, but I think this would be useful for anyone who applies for the other UK banks, too

The articles of incorporation doesn't seem to be enough for it

They might accept insurance documents.

@umesh.desai thanks for the response, turns out that Simon has got it in the package already and I didn't know

I?ve got retained profits as cash sitting in my UK Ltd and looking at deploying into Shares (https://www.foxymonkey.com/how-to-invest-your-company-profits/) but also potentially some into crypto. Does anyone have experience?

Hey guys, does anyone know if VAT applies when my freelancer in Germany invoices my LLP in the UK? I was under the impression that none would apply since Brexit, but I might be wrong.

@simon pinging you here, if you can tell me whenever you have some time

No VAT applies, the UK is treated as a third country now that brexit is over.

Anyone running an eCommerce store through a UK LLP with good volume? How has it been with banks and processing?

Good, that?s what I thought then. Thanks!

Hey! Do anyone have any recommendations for good tax lawyers/accountant for incorporating a UK Ltd for a marketing agency? I?m a Norwegian citizen. Thanks!

Has anybody changed the partners in their UK LLP? I've opened one, connected to my personal entity but I'm thinking of connecting it to a holdings company instead. Wondering how does the process looks like? Headaches or costs invovled?

@yaron.been It?s a fairly simple process on Companies House?s website and a short form via postal mail to HMRC. There are no costs involved (except for postage for the letter).

Feel free to PM me, I?ll prepare the form for you

Thank you Simon. Is there a limit for how many times this can be done in a certain timeframe? I'm not planning to do this every week haha but thinkink of switching the partnership to be under a holding company and maybe by the end of the year switch back to having it connected to a personal entity

There are no limits, you can add/remove partners as often as you wish. Obviously, keep in mind that all those changes will be public (visible on the registry) so it?s better to keep them to a minimum (so that it doesn?t look too strange haha).

Great, Thank you Simon. Will contact PM if i'd like to change

Hi! My LLP has 2 partners (a HK holding owning 100% and myself). Can the LLP be considered as a daughter company of the holding? I need to transfer (in accounting) product inventory from the HK holding to the UK LLP. Would that be possible?

@frederic.scheffer Sure, such a transfer is fairly simple to account for on both sides.

Thanks Simon. Also, when can profits be redistributed from the LLP to the partners? Does it need to wait for the yearly accountancy to be done? Or can I transfer part of the incoming revenue from the LLP to the Holding on a regular basis?

(We are an eCom company, so revenue is different from profit)

You can transfer profits as often as you want, you just have to keep track of the transfers.

Does that also apply to paying salary in case of UK Ltd -- can I pay myself a salary, or to my employees, at times more often, other times - less so? Also, can a salary fluctuate if I choose to make it so - up, then down, then up again... and in a big way? Theoretically, could it be $1 one month, and $1k next month, then $100 next month, then 0 next month....? In other words, are there any limits or rules as for "how often" and "how much of fluctuation" allowed?

@a10 Assuming you are a non-UK resident, perform your work outside of the UK and that your LTD is resident in the UK, you can pay yourself a salary net of tax (and yes the payments can be made at irregular intervals, with varying amounts). Keep in mind though that the salary payments should be ?reasonable? for the work performed (if you were to pay yourself 50000£ for an hour of work, the payment would likely be deemed a distribution and liable to corporation tax).

I see, thx

Hi everyone! I had a tax related question. I moved a while back from Belgium to the UAE, I've setup a company here, got my residency here and I'm not living in Belgium anymore. Next to that I've setup a UK LLP in order to open bank accounts as Revolut, Transferwise, Juni etc.. Now I was wondering, as I'm a resident from the UAE and I live here, does this automatically mean that I'm free of tax as I don't do any business in the UK itself? Or do I need to do extra things like sending documentations and stuff in order to be completely free of tax? I have a lot of friends who have this setup but when asking them I noticed they don't really 'care' about the correct way of doing it. Does anyone have more information on this matter? Thanks in advance for taking your time!

Technically you should be free of tax totally, make sure to get the UAE tax residency certificate. However, please do check if Belgium side if you are still regarded as a tax resident there. Theoretically your central life of interest should be in UAE

hi @simon . had a good chat with @ambroise.debret which is the reason for reviving this thread Does a UK LLP with non resident owners distribute dividends or profits per year? Or is the definition in your view the same thing?

@brian.ppcmanagement It distributes profits, not dividends. In most countries, they will be treated differently.

Okay thanks

Hey man, do you have experience now?

@simon, filling Adsense tax information, is a UK LLP considered a ?disregarded entity? or not?

@mohd No, it is a partnership for tax purposes

Thanks @simon, which of the above should i choose for the LLP?

Nonwithholding foreign partnership

Thanks!

Thanks for your response Joe!

Anyone know how long getting a UK VAT number normally takes?

And also can anyone recommend a relatively low-cost accountant to deal with a simple eCommerce store and handle the VAT stuff for us going forward in particular? (For a UK LLP)

@chris About a week, if you apply online. It?s fairly easy to efile VAT returns in the UK, you can do it using the same account you used to register for VAT. For EU VAT I recommend using Avalara.

Okay thanks.

Has anybody tried https://www.juni.co/? *Copying and pasting what they offer, based on an email newsletter I'm following:* _"They provide features such as Debit cards, physical and virtual, in *EUR, GBP,* or *USD*, with a *1% cashback*. These cards also work with all the major ad networks (Facebook or Google ads for example). You will also get access credit to improve cash flow so you can scale faster._ _ _ _Another special feature that *Juni*https://launchese.us20.list-manage.com/track/click?u=e9f9a27b8f1c1ce6140873e0c&id=3c71494e10&e=28996c5d74provides is a Dashboard, where you will be able to track all your bank accounts and payment gateways in one place, if you wish to._ _ _ _They can also retrieve your *Facebook* and *Google Ads* invoices and automatically match them with your transactions, this will help you decrease the volume of work needed in your business._ _ _ _The businesses that qualify for Juni are *LTDs*, *LLCs*, *PLCs* and Sole Proprietorships located within the EU, EEA and the UK."_ _---_ Seems interesting.

No LLP? :unamused:

Oh sorry, they had a typo in the newsletter which I copied and pasted, they do allow LLPs (based on the https://www.juni.co/faq)

Hey everyone ! I?ve been running a UK LLP since Jan 1st pretty smoothly and paid myself via wire (considered profit distribution, right?). From what I understand, to get the low-tax benefit from this setup (in most countries), personal income should rather be paid through dividends (which a UK LLP doesn?t issue). :point_right: What?s the way to do it right ? Create a UK LTD that I?d transfer my ?salary? to and then would distribute me dividends ? Other way ?

Move to a territorial taxation

@ambroise.debret where is your personal tax residency, and does the uk llp has anyone running it or just you

@marziovit I?m trying to find the right one yes :slightly_smiling_face: @joe I left Canada and I?m looking for one for 2021. I run the LLP for now.

@ambroise.debret the right ones depends on what are you looking for. Dubai, Philippines, Georgia, Panama, Costa Rica are only few countries where you could move.

Yep, those are some of the countries I?m exploring indeed. But my question was more in terms of ?payments to myself?, even if it depends on my residence country of course : )

Payment to yourself is taxed as personal income so if you don't want to pay taxes you have to move your residency as first thing.

@arommelaere did you have to send Notarized and translated utility bills? Or just the originals? Here in Thailand, phone and electricity bills are just a simple receipt in Thai.

@frederic.scheffer I just scanned AIS FIBER bill + LINN MOBILE phone bill (received from physical mailbox) and sent them (There is my Thai address and my name on both document), it was mix thai/english but address is written in English for both. Not used Notarized at all for LLP UK.

Hey @simon, with your UK LLP package, I got my company?s Wise account set up and all is good. Now I?m wondering about a personal Wise account, under my own name (which I can?t have in the UAE). Can I do that? Wise is asking me for a proof of address in the UK in my own name (not the company?s).

@loan You can get a personal account but it?ll be limited to money transfers. To activate the local currency balances (in your personal name) you must live in a supported country.

Got it @simon. Same as the UAE then. Thanks!

Hi, I want to open a Mollie account for e-commerce payments. *Was wondering if anybody encountered issues during the process or if there's anything I should know before submitting the info?*

How do you guys register IOSS to collect EU VAT with UK LLP/UK LTD ? Seems there is intermediary required to be in Europe to register IOSS ? (I am using oberlo/aliexpress so packages are not blocked as I'm paying small VAT on products directly from Ali but how to collect my own EU VAT without IOSS?) https://www.revenue.ie/en/vat/vat-ecommerce/import-oss/index.aspx "The IOSS can be used by both suppliers established in the EU and by suppliers who have no establishment, or fixed establishment, in the EU. EU suppliers can register directly for the IOSS in their own Member State. However, non-EU suppliers will need to appoint an EU established intermediary to avail of the IOSS. A supplier established in Ireland can register for the IOSS through the VAT OSS section in their https://www.ros.ie/ account."

I tried to register with them about a year ago for a German entity and just gave up after a couple of weeks. I can?t exactly tell you anymore what was the issue. I felt it was unnecessary overcomplicated and overly compliant to an extend that it felt ridiculous.

Went with Stripe instead..

and SEPA

Thanks Felix :slightly_smiling_face:

For tax purposes, is hosting websites on a US server considered doing business in the US or anything related to the US?

@mohd No

Thanks

Hello! I have a UK LLP and registered for a VAT number in France. Now, to pay the VAT, it is written that they only accept "B2B SEPA Direct Debit" (prélèvement SEPA in French). Sadly Transferwise doesn't offer this option. Has anyone managed to pay VAT this way for their UK LLP? Major pain. Could i let someone do it from their company in France (as a payment intermediary/representing us)? Obviously most banks that can do this don't accept a UK LLP (non-resident).

@frederic.scheffer TransferWise does support direct debit on their EUR accounts

@simon no, they don't support B2B direct debit

Ah so B2B direct debit is different from Sepa direct debit?

For what i understand they allow SEPA direct debit for B2C but not for B2B

It seems transferwise doesn't accept the system "SEPA B2B" "Nous ne prenons pas en charge les prélèvements en EUR mis en place avec le système de prélèvement SEPA B2B. "

And French tax uses SEPA B2B

Stupid system but I still need to find a way to pay them

@marziovit did you have to deal with this?

It seems we can pay by bank transfer and pay a penalty of max(0.2%;60?)

@frederic.scheffer no i haven't dealt with Wise and B2B SEPA direct debit. Have you tried to reach to http://intergiro.com or Revolut business asking if they allow B2B SEPA direct debit?

Still trying to onboard with Intergiro anyways. Will ask

Thanks

Anyone succeed to register EU IOSS without intermediary for UK LLP / UK LTD ?

@simon does a PE always creates a tax liability? For example what if you create a branch of your company in a country like Romania/Bulgaria where wages are low and you only use that PE as programmers hub, how that PE would be taxed if nothing is sold?

@frederic.scheffer have you solved the B2B direct debit problem?

@marziovit no. I made a bank transfer instead. And now with iOSS (kicked in 1st of july) they only use bank transfers. So should be ok

@frederic.scheffer using Wise?

Yes

@marziovit A PE almost always creates a tax liability but only for income generated through it. If you generate no income through it, you won't have any taxes to pay there (but will likely still have to file there).

Guys, if one of the LLP members is a UK LTD do you need to pay corporate income tax on your share of income even if you keep the money in the LLP?

@marziovit No, there?s no corporate tax liability if the corporate partner isn?t attributed any profits.

@simon when you say ?the corporate partner isn?t attributed any profits? you mean giving 0% profits to the corporate partner in the partnership agreement?

Correct, and when filing the partnership return (the % is entered in the return every year).

Hi, is a freelance service under UK LLP for German customer (EU) has to collect any VAT ? (It's not automatized system, it's a manual service to develop a website/app), from my understanding no need to charge/collect VAT in this case

@arommelaere that?s right, no VAT applies (assuming the service isn?t performed in Germany / EU)

Thanks @simon

Did anyone succeed to open a bank account with a physical bank in the UK? Using the LLP ofcourse? I?m curious

Curious too. I am planning to go to London end of September just for that.

Got a few sales from Scotland, not sure if I should charge UK VAT from them, can someone clarify? :slightly_smiling_face:

Hi all, I recently setup a UK LTD however I am having trouble telling http://gov.uk that the company is active which I understand that I need to do based on the letter they sent me? I registered for government gateway with an activation code via post - ok. But if I try to register for corporation tax it is asking for a national insurance number which I don?t have. Thoughts?

@rob713 If the LTD was setup electronically, there is no need to inform HMRC about it (the account will be setup automatically). All you need is to sign up for a http://gov.uk account and request an activation code for online access to the corporation tax account (there is no need to provide any personal info for that, and certainly no national insurance number, only the UTR for the LTD).

@simon Thanks for the clarification, appreciate it

Hi guys! I would like to plan if something happens to me and I end up in an hospital or even dead. I have a UK LLP owned by a HK Limited and would like to put my mother as the legal director if I am unable to take decisions, and also as the owner of my shares (100%) if i die. I guess I need to talk to some HK lawyers to set this up? Maybe also UK lawyers for the Uk llp? Any advices? Basically: 1. If I am incapacited, business needs to be able to keep running smoothly and my mother should be able to sign anything just like if she was the director. 2. If I die, she inherits all shares / ownership. Thanks!

Hi guys, Can anybody recommend a trustworthy 3PL service in the UK?

Hi guys, I'm still new & learning about legal stuff for business, To write down a quote/invoice to provide a manual service (dev website) from outside EU via my UK LLP for German EU customer: 1. Do I need to use the registered company address or my residency address on the quote/invoice (as company address)? 2. Should I follow UK quotation template based on UK rules (in English) or any country/language template is ok (ex: French/German language)? 3. Is it ok to be paid by transfer in EUR (to Wise) with a 3 times payment as long I convert the amounts for accounting to GPB ? 4. In the event of a legal problem with the customer (ex: non payment, customer unhappy with result), which country should take care of it, UK?

1. Use registered address. 2. Use English template 3. Your accounting software should be able to do this. You'll have to quote the EUR/GBP conversion rate on it. 4. UK

Add on to 4: Specify in your contract to which laws this contract abides and write down UK.

Thank you so much @felix and @burrup.lambert :pray::+1: