Non UK resident with a UK Ltd company.

AAT 123
AAT 123 Registered Posts: 8 New contributor 🐸
Hi all,

Just wanted to ask a quick question before I send my email off to a potential client.

Two people who I met yesterday (one UK resident one Hungarian) have set up a UK registered Limited company which will be selling it's product to mainly European customers, the Hungarian resident asked where she should pay tax and what she is eligible to claim in expenses?

I am thinking that I should perhaps reccomend that I deal with the bookkeeping and help with the UK based director's tax returns and advise that she should get a Hungarian accountant to advise her on how best to work her expenses (mileage etc) within Hungarian laws as I obviously have no clue where that is concerned?

Does anyone know at what stage (days spent here per year or any other way) she is eligible to pay the UK's taxes, NI, expenses allowances etc.

Any help is appreciated.

Cheers all.

AAT 123


  • AAT 123
    AAT 123 Registered Posts: 8 New contributor 🐸
    Can anyone help with this?

  • whiterose
    whiterose Registered Posts: 49 Regular contributor ⭐
    As the Hungarian client is not resident or ordinarily resident in the UK, (and not UK domiciled) then any earnings from the company are not taxed here in the UK but treated as foreign income by the Hungarian authorities.
    You mentioned expenses - is the client a director (and therefore an employee) or just a shareholder? If the directors expenses paid are just reimbursements of costs then I would say there are no earnings. Be careful of non-salary earnings ie benefits in kind - declared on P11D.
    If a shareholder then they will receive dividends with the accompanying paperwork and will declare them in their usual way.
    I agree with you, I would suggest the client gets a Hungarian accountant!
    Hope this helps.
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