Considering a UK LTD for Receiving Payments from the USA: VAT and Employment Questions

Alf85

Alf85

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Hello, I currently live in Europe and receive payments from the USA. Upon exceeding the €30,000 VAT threshold, I would need to pay a significant amount of VAT. I see that many members here use LTDs, and I understand the VAT threshold is higher in the UK (though I can't recall the exact figure).

If I were to set up an LTD, could I receive the payments through it and then become an employee of my LTD? Can someone explain how this works in more detail?

Thank you!
 
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Why not get one from USA via Stripe? It's somewhere from $800 to $1200 depending on what specifics you want for the Ltd or LLC comes with banking details and payment setup.

Not sure if his meets your needs but hope it helps.
 
Seeker7Finder said:
Why not get one from USA via Stripe? It's somewhere from $800 to $1200 depending on what specifics you want for the Ltd or LLC comes with banking details and payment setup.

Not sure if his meets your needs but hope it helps.
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Hello, as far as I know, they no longer open bank accounts for non-residents of the USA for an LLC.
 
you can set up an ltd and connect it with your stripe account, about the bank pioneer, about non us account, you can make pioneer and connect it to your stripe account so you can receive it even you are not US resident. It can be USD, EURO or Canadian dollar depending on your needs. Thats what I do, and yes you can be employee alone in your own LTD,
 
masterhodler said:
you can set up an ltd and connect it with your stripe account, about the bank pioneer, about non us account, you can make pioneer and connect it to your stripe account so you can receive it even you are not US resident. It can be USD, EURO or Canadian dollar depending on your needs. Thats what I do, and yes you can be employee alone in your own LTD,
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My income is from Ezoic.
 
Alf85 said:
My income is from Ezoic.
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Pioneer support that, while Stripe doesn't you can create an LTD and link it to your Stripe account. Just make a normal account and link your LTD with company number and etc
 
The limit is £90k in the UK for vat, so yes you can do what you want. You better speaking to your paid accountant, £400-800 yearly, who will tell you the best way to get payments from the company. It's probably better you take director payments via shares or something, maybe, as when you start including payments for National Insurance and things, you might want to avoid the complicated paperwork requirements in comparison.
 
Panther28 said:
The limit is £90k in the UK for vat, so yes you can do what you want. You better speaking to your paid accountant, £400-800 yearly, who will tell you the best way to get payments from the company. It's probably better you take director payments via shares or something, maybe, as when you start including payments for National Insurance and things, you might want to avoid the complicated paperwork requirements in comparison.
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Approximately with accountant and everything required, what is the cost of a LTD in UK per year? I understand that I have to pay taxes and social charges.
 
In most EU countries your 'foreign' company will be considered resident in the country you are a tax resident of (aka living in for 185+ days), ie. if you are living f. ex. in Sweden and form a UK LTD the Swedish tax authority will consider the UK LTD a Swedish resident company and thus you will be liable to Swedish tax rules regarding VAT.
 
Alf85 said:
Approximately with accountant and everything required, what is the cost of a LTD in UK per year? I understand that I have to pay taxes and social charges.
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I pay about £500 for an accountant, and that's it, really. I'm not making profit with my company yet, I'm still starting and growing.
 
Alf85 said:
Hello, as far as I know, they no longer open bank accounts for non-residents of the USA for an LLC.
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Stripe is just one, there are many services as such especially in the state of Delaware. So look at all the options you have.
 
Panther28 said:
The limit is £90k in the UK for vat, so yes you can do what you want. You better speaking to your paid accountant, £400-800 yearly, who will tell you the best way to get payments from the company. It's probably better you take director payments via shares or something, maybe, as when you start including payments for National Insurance and things, you might want to avoid the complicated paperwork requirements in comparison.
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That's basically tax fraud in most if not all EU countries.
 
Sister Spam said:
That's basically tax fraud in most if not all EU countries.
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Can't be. Your maybe right about tax jurisdiction being also int he home country. But if you are a director of a company in a different country, and you take payments out via shares, well, lets just say you wouldn't be the first, and you certainly wouldn't be the last to use this mechanism.

Its the directors company, and he can use whatever reason he wants to get money from the company, provided it is ethical and above board legally. Its only Elon Musk that has problems! lol

This is how I was taught business, and yes, maybe in communist eu countries the system is different, but for good ol' starbucks and Mcdonalds tax system in western countries, then how you think shareholders get their payment out? Thats certainly not illegal, and uses the same mechanism again. I'm not a tax or accountant expert though. I'm pretty sure neither are you. Your like me, you just offer your wisdom tooth bit, and that's that. We aren't the droids he's looking for.
 
Panther28 said:
Can't be. Your maybe right about tax jurisdiction being also int he home country. But if you are a director of a company in a different country, and you take payments out via shares, well, lets just say you wouldn't be the first, and you certainly wouldn't be the last to use this mechanism.

[removed political rant]
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Okay, I just went couple steps ahead thinking he will just take money without paying income tax on the dividends received. The "do what you want" kinda implied that. So, it might be not directly tax fraud but the entire setup does not work anyway, because his UK LTD will be considered tax resident in his country of residence and then, they might even declare the entire income as his personal income (higher rate usually than company rates).

Anyway, it's just facts. Take it or not.
 
@Alf85 btw why are you talikng about VAT here? If the buyer is in the US and you are in the EU, there's no VAT anyway.
 
Sister Spam said:
@Alf85 btw why are you talikng about VAT here? If the buyer is in the US and you are in the EU, there's no VAT anyway.
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That's because here they consider that I provide a service, even though I'm receiving money from Ezoic ads. Up to €30,000 annually, there’s no VAT, but beyond that, it must be paid. There's also another category that requires paying VAT from the first euro. They say I have to pay the VAT.
 
Alf85 said:
That's because here they consider that I provide a service, even though I'm receiving money from Ezoic ads. Up to €30,000 annually, there’s no VAT, but beyond that, it must be paid. There's also another category that requires paying VAT from the first euro. They say I have to pay the VAT.
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If you are providing a service to a client outside the EU, there's still no VAT.

"If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT."

https://europa.eu/youreurope/business/taxation/vat/cross-border-vat/index_en.htm#outsidetheeusellservices-1
 
Sister Spam said:
If you are providing a service to a client outside the EU, there's still no VAT.

"If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT."

https://europa.eu/youreurope/busine...r-vat/index_en.htm#outsidetheeusellservices-1
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I’ll check again because, according to my accountant, even though all my income comes from the USA, I still have to pay VAT, which seems strange.
 
In case I didn’t explain it well, I can’t charge VAT to Ezoic in the USA, but in my European country, I have to pay that VAT out of my own pocket. That’s what I’m referring to.
 
Alf85 said:
In case I didn’t explain it well, I can’t charge VAT to Ezoic in the USA, but in my European country, I have to pay that VAT out of my own pocket. That’s what I’m referring to.
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Makes no sense. Change accountant.
 
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