Where to pay corporation tax
Hi there!
I’m a French resident and 3 years ago I opened my LTD in the UK and I started to sell on Amazon.
I have an accountant in the UK and I always paid all corporation tax in the UK.
Now, while I was looking for another accountant that suits better my company, I had a completely different opinion about how to managed the corporation tax.
For this accountant I’m supposed to pay all the corporation tax in France and declare to the UK that I already paid the tax of my company in France and I don’t have to pay anything in the UK. This is because I do not have a physical office in the UK where I manage the business.
Please look at article 5 and article 7.
I don’t know anymore if what I did until now is correct or not.
Where to pay corporation tax
Hi there!
I’m a French resident and 3 years ago I opened my LTD in the UK and I started to sell on Amazon.
I have an accountant in the UK and I always paid all corporation tax in the UK.
Now, while I was looking for another accountant that suits better my company, I had a completely different opinion about how to managed the corporation tax.
For this accountant I’m supposed to pay all the corporation tax in France and declare to the UK that I already paid the tax of my company in France and I don’t have to pay anything in the UK. This is because I do not have a physical office in the UK where I manage the business.
Please look at article 5 and article 7.
I don’t know anymore if what I did until now is correct or not.
0 replies
Seller_7VbclcPFFRTnc
It falls under the double taxation agreements and due to the paperwork you’ll need to file with both governments, you need to use an accountant who is familiar with the process
Seller_esvgLzKXw2YAl
I really don’t think this is the right place to be asking this kind of question.
It’s very much an accountant’s domain and that is who you need to speak to.
Particularly so, as the vast majority of sellers on the UK forum are going to be physically based in the UK and not France. As such, they aren’t going to know the legal side of this generally speaking.
However, a very quick search found the below document.
Of note is:
1. Introduction
The general rule is that a company which is not resident in the UK has to pay UK Corporation Tax only if:
- it has a permanent establishment in the UK
- the economic activity that generates its profits is carried out in the UK
So if your company is registered in the UK and produces it’s profits in the UK, then I would imagine, that there is no choice that you pay corporation tax in the UK.
What you probably should have done, is to register a company in France and use it to trade in the UK.
But you can’t go backwards with this kind of thing.
Seller_qZO3ZCjoBXEeL
Also just to check, if you store stock in the UK (FBA), you are registered for and paying UK VAT on all your sales?
Seller_aMa4v1LzUrEIp
You should not have… Sorry, I know it is not helpful but very true!
Seller_KNi2NLp73dQ0v
The company is based in the UK but I’m not a UK resident.
I trusted my accountant that told me until 85k of turnover I was not supposed to registered for VAT.
Now I’m really confused and I just hope to find an accountant able to help to solve this and take care of my business.
Thank you to everyone for your advice.
Seller_KNi2NLp73dQ0v
My company have a UK address, I pay my accountant for this service, and Avask told me they can offer me the same service.
Seller_KNi2NLp73dQ0v
I stayed in the UK few months before BREXIT, at that time I found the accountant and he opened the company for me.
I don’t know if is important to know, but I just buy all the goods in the UK and sell them in the UK.
Seller_KNi2NLp73dQ0v
If I have to pay £20k or more of fines this it will probably end my carrier.
Seller_KNi2NLp73dQ0v
Thank you The_Little_Shop, I hope I’ll find a way to solve it
Winston_Amazon
This has been a roller coaster of a thread, thank you everyone here with these posts, they have been nothing but helpful. @Happy_To_Buy I really do wish you the best of luck with this situation and keep us up to date!
