Can I pay my company tax through UK rather than Poland?

Madzia2016

5 Jan 2016 #1

I am Polish and work as an English teacher in Poland. I live and have a house in Poland. I have also Lived in England with my English husband, now divorced, but while in England I did obtain a National Insurance Number. I would like to know if it is possible for me to open a company in England (very easy and cheap to do) and then invoice clients in Poland from my UK company and have payments made to my English bank account? If so could I pay my tax and National Insurance contributions in England and get the generous Personal Tax Allowance rather than pay the Polish tax and ZUS?

delphiandomine 87 | 18070

5 Jan 2016 #2

Theoretically, yes, you can. But ZUS have made it very clear recently that it isn't going to be tolerated, and people have been getting caught.

I wouldn't risk it, not with this government operating a huge deficit and needing to get cash from everywhere.

dolnoslask

5 Jan 2016 #3

Madzia2016 Inn your case I think that you would be liable to pay polish taxes. Setting up a UK company to Invoice your polish clients that you are teaching in Poland while living in Poland would be seen as tax avoidance.

I hope this helps.

OP Madzia2016

5 Jan 2016 #4

Hmm...good point. Could I then pay the ZUS and pay just my income tax in England? Would still leave me better off.
Thank you for your reply

delphiandomine 87 | 18070

5 Jan 2016 #5

Income tax is a separate kettle of fish, and the law clearly defines liability as those either a) living in Poland for 185 days or b) Having your centre of "vital interests" in Poland.

OP Madzia2016

5 Jan 2016 #6

So realistically then its a No...

Ive just heard of others doing this or similar.

I read this (below) and thought it was interesting particularly section C regarding the health of a family member, as I am living back in Poland mainly due to both parents being elderly and needing assistance. Would I be correct in thinking I could claim the UK's personal allowance back of my Polish tax bill. Thats £10,600.00 for 2016.

UK Personal Allowances for non-residents
Some of the UK's double taxation treaties provide for personal allowances to certain categories of individuals (for example, nationals of the other territory who are resident in that territory).

In addition to the provisions of any double taxation treaty, if you are not resident in the UK you may use form R43 to claim the same UK tax allowances as a
UK resident if, at any time in the tax year you meet any of the following conditions:

a. You are a British citizen or a national of another member state of the European Economic Area (...)

ukbusinessforums.co.uk/threads/tax-on-real-estate-rental-income.252005/