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Currently resident non-dom

appleapple Settling In NicelyRegistered Posts: 39
Can anyone help me out? my client's company is registered in the UK, the registered address the a formation agent address. The director and only shareholder currently resident here. my client's just signed up a 5 months contract and will be working in one of the EU contries where he is domiciled. He wont rent a flat and he does not own a property here in the UK.
from his point of view, if his company is a uk based company but he wilk work in a EU country then does still count as UK income and he should be taxed here or should he be taxed in the EU country? i am confused


  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Assuming the question is about how the director shareholder will be taxed,
    What income does the director receive from the UK company? Salary, dividends or both or none? Have you looked into the statutory residence tests to see whether the director is UK resident for the tax year? What was his situation the previous tax year? Is the contract with a different company?
  • appleapple Settling In Nicely Registered Posts: 39
    He has been resident for 2 years. He is getting salary and dividends. He will be paid by his company.
  • appleapple Settling In Nicely Registered Posts: 39
    sorry for my lack of knowledge on tax residence... and i think i did not make myself clear
    so if he is resident in the uk and will be paid by his uk based company but the work is in another EU country so phisically he will be working in an EU country , this still counts as he is resident here and will be taxed here. but let say his company extend the contract and he will be spending more than 183 days in the other country in the next tax year he will have to pay tax in the other country. this is my guess.
  • appleapple Settling In Nicely Registered Posts: 39
    thank you, p47 what i need.
    as per VAT, both companies based in the UK but the place of supply will be in the other EU country, so UK VAT does not apply, but the other company as customer accounts for VAT under reverse charge plus my client needs to complete ECSL.
    What issues to be considered re CT?
  • appleapple Settling In Nicely Registered Posts: 39
    thanks for your help. it is IT services
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