hello,

does anybody know if a uk limited company is considered dormant in the uk when it doesnt have any uk income? the company would only have us income. how would it pay taxes in the uk if it has to? or exists any tax agreement with the us?

thanks a lot guys,

overseas
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if it is a uk company then it pays corporation tax on its profits where ever they are received. So it is not dormant if still trading albeit in the US.
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is this also the case if the money would never get transfered to the uk, but stay in the us? thank you for your reply.
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if business is being transacted through the UK company (invoices, payments etc), then it is an active company!
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so there would be a very high double taxation and no way around it!? thank you.
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Can I ask why did you set up a uk company?

Why not set the business up in the USA?
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I would expect there to be a double tax agreement with the US to sort this out. If not (most unlikely) there will probably be unilateral relief in UK tax.

For example, and I would guess this to be the case, if you are trading in the US I would expect you to pay US taxes. You also have to make a return in the UK, because you are resident here and there will be some measure of relief for the US tax that you have paid. I have no idea of US tax rates, but if you made ?00k and paid 15% tax in the US, you might find that your UK liability would be 21%, less the 15% that you have already paid.

Disclaimer - I don't have anything to do with international tax, and nor do many smaller practices, unless it is one of their niche markets. Take proper advice from somebody who does.
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a uk business leaves the option open to do also business in the uk and in the us. start up costs are smaller than a us llc.
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Ok thanks - suppose then you will have to live with the tax issue
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