UK Limited - Salary for Non Resident Director

[NicolasMaduro]

So as a Non-Resident Director in the UK.

If I pay out a one time directors fee, for example £12.500.

The personal allowance in the uk is £12,500, so then I would just have to pay national insurance
which is £360.

Is this understood correctly? Do a non resident director have the full personal allowance?

 

[JustAnotherNomad]

I don't know anything about the UK, but why would the salary of a non-resident be taxed in the company's country anyway? Is this a special thing for directors? Usually the taxes are paid where the employee is tax resident.
I also find it hard to believe that you'd have to pay social security contributions - because you probably wouldn't be able to use social security benefits as a non-resident?
Just seems odd to me.

 

[Martin Everson]

NicolasMaduro said:
Is this understood correctly?
Click to expand...

No. UK personal income tax system has nothing to do with you if you are not subject to it.

NicolasMaduro said:
Do a non resident director have the full personal allowance?
Click to expand...

What for? They are not tax resident in UK for income tax purposes. Unless duties are carried out in UK then its different story.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[NicolasMaduro]

Just this sentence I´m reading on the subject:
"Yes. A non-resident director of a UK company is an office holder, and any incomereceieved in respect of this UK role should be treated as earnings in the UK and subject to UK wage tax withholding (PAYE)."

 

[Martin Everson]

NicolasMaduro said:
Just this sentence I´m reading on the subject:
"Yes. A non-resident director of a UK company is an office holder, and any incomereceieved in respect of this UK role should be treated as earnings in the UK and subject to UK wage tax withholding (PAYE)."
Click to expand...

https://www.rsmuk.com/ideas-and-ins...tors-of-uk-companies-and-the-tax-implications
https://www.taxadvisermagazine.com/article/perils-and-pitfalls-non-uk-resident-directors
As I said in my first post. The key is where the "role" is performed 😉.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.