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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 30 Jul 2025 10:35

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

Popular Articles

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more Read more
Owner-Managed Businesses

First year allowances

First year allowancesFirst year allowances (FYAs) are available on the following items:•first-year relief on qualifying new main rate plant and machinery (at 100%, which is described by HMRC as ‘full expensing’) and special rate assets (at 50%) from 1 April 2023 (companies only). These FYAs were

14 Jul 2020 11:41 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2025