My client (sole director shareholder) incorporated a UK company five years ago to provide remote IT support which they operated from their home office. What was supposed to be a temporary move to Spain has ended up being permanent and so for the whole of the company’s accounting period the director has been non-UK resident, running their business from Spain.

I have been told that the tax authorities in Spain have deemed the company, for the same accounting period, to be Spanish resident. I am aware that this might affect what the company will need to pay UK corporation tax on but just need some clarification.