Can I run my UK limited company from abroad

Running a UK limited company from overseas as a non-UK resident

If you don’t live in the UK, you might be thinking about running a UK-based limited company from another country. There are things to think about, like your taxes and where your company is officially based.

Getting your taxes right is really important here. You also need to sort out which bank accounts your business will use and where your company will be officially registered.


Tax implications of operating a UK company from overseas

From a personal tax view, rules vary based on your location overseas. Your tax residency needs figuring out – if you spend time in the UK, you might have to pay UK tax as well as tax in your home country.

Another thing to think about is how much time you’ll spend in the UK. You might need to come over often for meetings or other business stuff. When it comes to your business taxes, your company will have to pay UK Corporation Tax on its profits.


Bank account

You can open a business bank account where you live. You’re not required to use a UK-based account, but sometimes it’s helpful and makes transactions with UK clients easier.

Having a bank account in your home country might lead to extra transaction fees and conversion expenses. Since banks have different systems, it’s smart to ask your UK bank if you haven’t moved abroad yet.

It’s a good idea to open a separate business account for your company wherever you live. It makes accounting simpler and keeps your business and personal money separate.


Contractor limited companies

If you have a UK-based contractor company usually falling under IR35 rules, living abroad allows you to operate your business without being bound by IR35 or intermediaries’ legislation.

IR35 rules are about off-payroll regulations aimed at stopping ‘disguised employment.’ Recent changes to these rules have created financial problems for some contractor businesses in the UK. Now, end-clients have to decide the employment status of contractors, affecting how businesses operate.


Registered company address

As a director of a limited company, you don’t have to live in the UK to run your company. But since your company is registered in the UK, you must have a registered company address in England, Wales, Scotland, or Northern Ireland.

Sometimes, people use an agent for this – like an accountant’s office address or a company formation agent. You’ll also need to give your address abroad so that Companies House or HMRC can contact you about business stuff when needed.

Both addresses must be physical where mail can be sent, and they’re listed in the Register of Companies at Companies House. Since the register is public, directors often opt for a ‘service address’ for privacy and security reasons.


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Filing and reporting requirements

Your company must be registered with HMRC. You’ll have to file and submit statutory reports to both Companies House and HMRC, just like you would if you were a company director living in the UK.

If you need personalised advice for your situation, Vanguard Insolvency is here to assist you. We offer independent professional guidance on managing a UK limited company from abroad, and we provide free consultations. Feel free to reach out to one of our team members – we have offices across the UK.

David Jackson MD
Senior Partner at Vanguard Insolvency Practitioners | Website

I am an insolvency professional with a distinguished career specialising in commercial insolvency, adeptly navigating Creditors Voluntary Liquidation, Company Voluntary Arrangements, and Company Administrations. With a comprehensive understanding of insolvency laws and an unwavering commitment to ethical practices.