Running a UK limited (Ltd.) company from Germany

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I have a UK limited since years, but live now permanently in Germany and i do most of the work from Germany, even that there is a company address in the UK. The limited invoices customers across Europe (other companies )

 

- i understood i can tell the UK taxes i pay all taxes in Germany and do not need to file anything in the UK. Correct ?

- Do i also file my VAT i charge in Germany ?

- when my limited writes invoices, do i write UK or German VAT on the invoices ?

- do i need to register the Limited in Germamy and if yes where and how ?

 

Thank you.

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Will do afterwards, but like to have first feedback from real live , to know what to discuss

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What about running a UK limited company from Germany in the following set up:

 

1. One Director who is a German resident

2. Two shareholders: one is the above Director, and the other is a UK resident (imagine both hold roughly equal ownership)

3. This is an internet e-commerce business: all sales, fulfillment, accounting/book keeping done in the UK

4. Managerial decisions, in light of Director's residency are taken in Germany but those decisions are controlled by UK shareholder 

 

Is the company a UK or German resident for income tax purposes?

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I'm not an accountant but I've had lots of discussions with my accountant on these sorts of scenarios arising from my own (former) company.

Based on your description only (and advice I was given), I'd tend strongly towards saying that the company was based in Germany. 

A director can bind the company, there is only one director, and they are based in Germany.

Some things that could change it:

1) resign as a director and appoint someone in the UK, so that the only Director is UK based;

2) (a weaker alternative to 1) appoint some directors in the UK, so that the majority of the board is in the UK;

3) employ someone in the UK to carry out some of the services;

4) own (or at least lease) some sort of business premises in the UK.

 

 

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20 minutes ago, dstanners said:

I'm not an accountant but I've had lots of discussions with my accountant on these sorts of scenarios arising from my own (former) company.

Based on your description only (and advice I was given), I'd tend strongly towards saying that the company was based in Germany. 

A director can bind the company, there is only one director, and they are based in Germany.

Some things that could change it:

1) resign as a director and appoint someone in the UK, so that the only Director is UK based;

2) (a weaker alternative to 1) appoint some directors in the UK, so that the majority of the board is in the UK;

3) employ someone in the UK to carry out some of the services;

4) own (or at least lease) some sort of business premises in the UK.

 

 

The company rents an office in the UK (co-working space). Paid for on a monthly basis. It is free to use but in reality gets used only when the Director travels to UK from Germany. He is there once per quarter. Does that help?

 

One more thing, does having freelancers in the UK count for employing someone?

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Those things would help, but you still aren't getting over the main flaw: there is only one Director, and they are based in Germany (save for one trip per quarter). As such, I think your current structure would expose your company to paying tax in Germany.

Could you not resign as a Director? Perhaps even with a power of attorney to allow you to provide certain services for the Ltd? I imagine you would need to indemnify the UK directors if you wanted to provide services under a POA.

Depending on the nature of your business, an alternative structure you might want to discuss with your accountant could be that you could work as a Freiberufler here in Germany, with your old Ltd as a client (provided you had at least one other client). If that structure could work, then from the info provided (you would have only UK Directors, UK clients, UK freelancers and a subcontracted supplier in Germany), potentially the company profits would be taxed in the UK, whereas your earnings from the company would be taxed in Germany (you would invoice your former company for your time each month, just as you would for any other clients).

Just an idea, but there are lots of accountants/tax types on this forum who may have other/better ideas.

 

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