Setting up overseas ― sole traders and partners

Copyright © 2025 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Setting up overseas ― sole traders and partners

Copyright © 2025 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

Trading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications.

This note deals only in broad outline with the UK tax issues relating to the self-employed generally, and then considers some issues which are specific to partners. The tax regime in the overseas country is also very important. Its specific rules, and the ways in which the two systems interact, should both be explored before decisions are taken.

For an overview of the points to consider for certain jurisdictions see Tolley's Global Mobility: Personal Taxes. For example Tolley's Global Mobility: Personal Taxes, IR2.8 which covers the Republic of Ireland.

Is there an overseas operation?

A sole trader or partnership which is based in the UK and merely selling goods or services to customers overseas is not normally subject to foreign taxes on their profits. To be taxable the individual must generally have a permanent establishment. Different rules may apply for VAT, see the International

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  • 30 Jul 2025 10:35

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Starting in business and incorporation

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