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Run my business from Italy - where to pay taxes?
I want to run my freelance copycopywriting business from Italy (miles better weather than Birmingham ;-), and am wondering:
Can I pay taxes to Italian authorities despite the fact this will still be a UK registered business? I’d rather leave the company name and "Ltd" alone, as I’m unsure how my customers would react to working with a company abroad…
Many thanks
Thomas
Yes, payments would be made into a UK bank. The intelectual property i.e. me!, will be moving to Italy. Does this help?
This is a complicated issue and you may be wise to ask your local tax office in the UK (they’re actually really helpful despite a bad press!).
I’ve had the same issue and my understanding is that the business is considered to be based wherever the money goes - in your case that would be into a UK bank and therefore tax is payable in the UK.
I have recently taken advice from an Italian lawyer as well. Her strong (very strong) advice was not to get mixed up in the Italian legal / tax system if you can possibly avoid it. She’s right - it’s a complete nightmare of bureaucracy and if there are any problems it can take years (literally) for Courts to sort it out.
In these days of online businesses it’s a question which is beginning to get more and more attention from the authorities in both Italy and the UK.
Good luck with your relocation - you’re absolutely right about the weather!
This is a complicated issue and you may be wise to ask your local tax office in the UK (they’re actually really helpful despite a bad press!).
I’ve had the same issue and my understanding is that the business is considered to be based wherever the money goes - in your case that would be into a UK bank and therefore tax is payable in the UK.
I have recently taken advice from an Italian lawyer as well. Her strong (very strong) advice was not to get mixed up in the Italian legal / tax system if you can possibly avoid it. She’s right - it’s a complete nightmare of bureaucracy and if there are any problems it can take years (literally) for Courts to sort it out.
In these days of online businesses it’s a question which is beginning to get more and more attention from the authorities in both Italy and the UK.
Good luck with your relocation - you’re absolutely right about the weather!
References :
I live in Italy and have an online business.