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Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 6475
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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I'm a professional without an address. I work as a

Customer Question

Hi there, I'm a professional without an address. I work as a model, as a freelance translator and I am also currently setting up a distribution company that will do carry out wholesale and online sales of my friend's products (sunglasses). I go all around
the world and generally never spend more than 2 months in a given country before I move on. I was born and raised in Denmark and since I was 18, which is 5 years ago, I've been paying taxes there although I have only spent about 2 month every year in the country,
visiting friends and relatives, and have lived the remainder of the year in various other countries, such as The U.S., Japan, Spain, France, UK, Italy... Now, I pay 25% VAT on all translations and sold products + 40-50% personal income tax in Denmark. Needless
to say... as I haven't lived in Denmark for 5 years, I want to optimise my situation. This I have already done too - by moving to London where I've rented a really expensive apartment for 6 months and registered for this fiscal year (which runs April - April).
The good thing about London is the low income tax and that it's not necessary to pay VAT on translation endeavours, nor on income lower than xxx. However, on April 2nd, I'll be moving out of my flat and then go straight to Japan for 2-3 months, then I'll spend
2-3 months in Europe, then 3 months in New York... You get the drill. I will no longer be eligible for UK tax... will I have to "move" back to my mum's address in Denmark even though I haven't lived there for 5 years? Or can I set up a company with an address
in a different country and pay taxes there? UK perhaps? According to this article, it seems like a good idea: http://www.makingitanywhere.com/digital-nomad-tax/ It might also be worth mentioned that I expect to make around €30K on modeling per year and around
€10-15K on translations. Add the sales from the distribution company which is XXX. Given the low amounts, a simple solution is preferable. If you can suggest a plan that would work for me in the years to come. Best, Jonas
Submitted: 12 months ago.
Category: UK Tax
Customer: replied 12 months ago.
If I follow I advice of the article and set up a UK based company to sort out everything, can I then run modeling, translation and my sales/distribution company all through one?And where will I then pay personal income tax (could I simply wait to take out money from the company till I'm residing in a better place?)Last question - if I set up this company, can I write the address for the company up to be a friend's place, even though I do not live there?
Expert:  JACUSTOMER-p9i3kv2f- replied 12 months ago.

Hi Jonas, your question is most interesting. You can establish a company in the UK but you first need to become a UK resident. If you plan to be in the UK only for 6 months without a permanent address then you will not qualify as a UK resident. Yet, will the income you mention come from a UK employer/client?

Customer: replied 12 months ago.
Yeah, "the system" is really not updated to accommodate "globalised citizens" who work online... interesting indeed. Being one as such, I'd rather call it frustrating though. ;)I do have an address in the UK for the 6 months I'm staying and currently I live and breathe in London. My lease runs from 2nd of October - 2nd of October 2015/16 but I plan to move out on the 2nd of April as I'll go for at least a year of traveling. After that, I'm not sure whether I'll be returning to the UK or perhaps settle down in the U.S.But I assume this is not enough to apply for any sort of residency. And I can't set up a "limited company" without residency?The income is not mainly from UK clients/employers, although some of it does come from UK based companies. But only about 20%.
Expert:  JACUSTOMER-p9i3kv2f- replied 12 months ago.

You could establish a company, but typically you need to reside in the UK. Consider doing that after the first 6 months and perhaps by then you may decide to stay in the UK. Also it is difficult that with only a small part of your income coming from the UK it would make sense to apply for residency etc. yet this may change in the next 6 months. If you are happy with these answers, can you give me a positive rating?

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