Can I run my UK limited company from abroad?

How to run a UK limited company from overseas

If you’re not resident in the UK, you may be wondering whether you can run a UK-based limited company from abroad. There are various issues that you need to consider when running a company from abroad, including your tax liability and registered company address.

Paying the correct type and amount of tax is crucial in this situation, but you also need to think about the bank accounts your business will use, and the address where your company will be registered.

Tax implications of running a UK company from abroad

From a personal tax perspective, the rules differ depending on exactly where outside of the UK you live. Your tax residency will need to be determined - you may need to pay UK tax if you spend part of the year here, in addition to the tax due in your ordinary place of residence. Depending on the nature of your business, you may need to visit the UK regularly for meetings or other business matters.

As far as your business taxes are concerned, your company will be subject to UK Corporation Tax on profits regardless of where you are ordinarily resident.

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Registered company address

While you aren’t obliged to be resident in the UK, as your company is registered in the UK you will have to provide a registered company address in England, Wales, Scotland, or Northern Ireland.

Sometimes an agent is used for this purpose – an accountant’s office address or company formation agent, for example. You would also need to provide the address where you reside abroad so that Companies House or HMRC can contact you on business matters where necessary.

Both of these need to be physical addresses where mail can be sent, and the details are included in the Register of Companies at Companies House. As the register is publicly viewable, directors often choose to use a ‘service address’ for privacy and security.

Bank account

You can open a business bank account in your place of residence. You aren’t obliged to use a UK-based account but in some cases it may be beneficial, and encourage smoother transactions particularly if your clients are in the UK.

Operating a bank account in your country of residence would incur additional transaction fees and conversion costs. Different banks operate different systems so it’s worthwhile checking with your existing UK bank if you haven’t yet moved out of the country.

It’s always advisable to open a separate business account for your company wherever you are resident - it makes accounting more straightforward, and provides a clear distinction between your business and personal funds.

Contractor limited companies

If you run a UK-based contractor company that would normally come under IR35 regulations, living abroad means you can still run your business but you won't be subject to the IR35, or intermediaries legislation.

IR35 rules are off-payroll regulations that prevent ‘disguised employment.’ Changes to this legislation have caused financial issues for some contractor businesses run by directors in this country, as end-clients are now responsible for determining contractors’ employment status. If you live outside of the UK, however, you do not need to comply with IR35 legislation.

Filing and reporting requirements

Your UK limited company must be registered with HMRC and you will need to file and submit the statutory reports to Companies House and HMRC, as you would if you were a company director resident in the UK.

Can I liquidate my company from abroad?

Yes you can liquidate a UK company if you are abroad. Just like any other company director, however, you will be required to comply with UK insolvency legislation meaning you will need to employ the services of a licensed insolvency practitioner who operates and practices in the UK.

You will typically not be required to have any face-to-face meetings, as all conversations can be done over the phone, all meetings can be conducted virtually, and all documents can be sent electronically. 

When looking to liquidate a company, whether in or outside of the UK, you need to seek advice from an insolvency practitioner who is licensed to take appointments. With over 70 licensed insolvency practitioners, Real Business Rescue are perfectly placed to help.

If you’d like more information tailored to your individual circumstances, Real Business Rescue are here to assist. We’ll provide independent professional advice on closing a UK limited company from abroad. Please get in touch with one of the team for a free consultation– we operate across a network of offices throughout the UK.