LS Legal News Bulletin
UK Tax for Expat Directors: LTDs and personal income
Monday 8th April 2024
Liliya Scott
🧲 Many expat entrepreneurs are drawn to the benefits of setting up a company in England, Scotland, or Wales. However, British tax laws are among the most intricate in Europe, so dealing with taxes requires careful attention.
In the UK, taxes are collected progressively for both self-employed individuals and employees. This includes income sources such as:
- Wages and other payments from an employer
- Business profits
- Pensions and benefits
- Interest earned from bank deposits
- Dividends
Understanding tax rates and the procedures for registering self-employment and reporting income can be quite complex.
📌 Taxation for LTD companies in the UK
An LTD (Limited) company typically has a director, shareholders, and a secretary. Taxation for these companies involves a mix of corporation tax (which depends on profit levels) and income tax on salaries and dividends (which varies based on amounts).
LTD companies are obligated to submit annual financial reports, and both directors and shareholders must declare their income.
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