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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4089
Experience:  FCCA FCMA CGMA ACIS
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I'm interested to know whether I would be liable for

Customer Question

Hi,
I'm interested to know whether I would be liable for any corporate taxes in the UK if I provided affiliate marketing / lead generation services to the UK businesses.
There would be a website hosted in the UK which would contain affiliate links OR forms used to collect personal information. I would get paid for each sale or lead generated by the UK businesses.
I assume it's important to define whether it's considered a permanent establishment in the UK or not? Is it?
Some additional details, I'm a non UK resident (located in EU), will run business alone, all web development will be done by me or outsourced, my company could be either established in EU country or outside EU in some tax friendly jurisdiction if it makes any difference.
Thanks
Peter
Submitted: 2 years ago.
Category: UK Tax
Expert:  bigduckontax replied 2 years ago.
Hello Peter, I am Keith and happy to be able to assist you with your question. I would suggest that as you are not resident in the UK then your activities would be subject to tax in the EU country where you live. In any event, the Double Taxation Convention between the UK and other EU states would prevent your income stream being taxed twice, although the Convention does not protect you from differences in rates of taxation. This is achieved by means of tax credits, tax deducted or paid in one country being allowed against your liability in the other country. If you spend more than 183 days in the UK in any one tax year then you are liable to UK taxation on your world wide income. Providing you do not spend more than 90 days in the UK in any one tax year (6 April - 5 April) then you retain your non resident status. In theory this can be averaged out over 4 years, but the general consensus amongst experts on this site is never to exceed the magic 90. Whether your company is established inside or outside the EU is irrelevant, providing it is not in the UK. A great number of big businesses operate in this was; for example Amazon, Starbucks and Vodafone. I do hope my reply has been of assistance.