Question PAYE Tax for UK non-resident director of a UK LTD

[DanialN]

Hello all,

I have an AdSense-based business and recently set up an LTD in the UK to be able to get my revenue through AdSense. I have already applied for PAYE.
What I am confused about is, how do I submit a payroll? I've never been to the UK (have no tax code, no NI) - do I even need to pay income tax in the UK?

Would appreciate your help.Attach files

 

[James Turner]

Hi @DanialN Please feel free to contact me via email and I will be happy to assist you in resolving your query. [email protected]

 

[DanialN]

Hi @DanialN Please feel free to contact me via email and I will be happy to assist you in resolving your query. [email protected]

Thank you for replying to the thread James, however, I would prefer if we keep the conversation here. Would love to hear your solutions to the problem I am facing.

 

[cangarooo]

Hello all,

I have an AdSense-based business and recently set up an LTD in the UK to be able to get my revenue through AdSense. I have already applied for PAYE.
What I am confused about is, how do I submit a payroll? I've never been to the UK (have no tax code, no NI) - do I even need to pay income tax in the UK?

Would appreciate your help.Attach files

Hi. Where are you tax resident?

 

[DanialN]

Hi. Where are you tax resident?

Armenia

 

[cangarooo]

Maybe a silly question but why did you apply for a PAYE?
Do you have employees?
Are you the Company Director?
Do you plan moving to or living in UK?

 

[DanialN]

Maybe a silly question but why did you apply for a PAYE?
Do you have employees?
Are you the Company Director?
Do you plan moving to or living in UK?

I am the company director, but have no employees and not planning on moving to the UK.
The reason I applied for PAYE was that RapidFormations.co.uk told me to do so - This was after I told them that I plan to pay myself a salary from the profits.

 

[cangarooo]

Well, sorry to say but this is not effective.
You could pay yourself dividends instead of salary so no PAYE applies.
Also, you may check if your company match the criteria to be registered as Non-Resident Ltd as there are huge tax benefits

 

[DanialN]

"not effective" as in, I cannot pay myself a salary?
The only way I can extract money is through dividends?

 

[cangarooo]

you can pay yourself whatever you prefer.
i'm just saying that there better ways to be tax efficient.

 

[AndyAresa]

Interesting matter. I have seen elsewhere that directors of a UK company who exercise their duties outside of the UK are not subject to PAYE and possibly exempt from social security contributions (NI). This must be vetted by a UK advisor of course.

 

[cangarooo]

@AndyAresa this is exactly what i wanted to highlight.
And, under certain circumstances, UK Ltd with non resident Directors and conducting certain activities (predominantly outside UK) may apply for a Non-Resident status which means a huuuuuuuuge Tax benefit.

 

[Marzio]

@cangarooo do you follow any particular process to register the UK LTD in the treaty country?

 

[AndyAresa]

@AndyAresa this is exactly what i wanted to highlight.
And, under certain circumstances, UK Ltd with non resident Directors and conducting certain activities (predominantly outside UK) may apply for a Non-Resident status which means a huuuuuuuuge Tax benefit.

were a UK company to become non-resident in the UK, would it not cause it to become tax resident in another country? It looks as if one would need to carry the admin burden both in the UK and in the country of the company's tax residence. Surely, if the tax savings exceed the admin expenses, it might be worth doing.

 

[cangarooo]

Becoming a Non-Resident UK means almost zero burocracy.
The tax residence in your home country then it will be impacted in the way you recognize yourself "money".
Of course, this vary on case by case and especially based on where you are resident.

 

[sp2021]

@cangarooo I have been reading your posts about non resident UK LTD set up with great interest. Is there a way to reach out to you for clarification?

 

[avalanche]

"not effective" as in, I cannot pay myself a salary?
The only way I can extract money is through dividends?

12k gbp salary annum is tax free in UK, so it really depends on how much your salary gonna be
https://www.gov.uk/income-tax-rates

 

[cangarooo]

@cangarooo I have been reading your posts about non resident UK LTD set up with great interest. Is there a way to reach out to you for clarification?

Sorry for the long silence. Been travelling.
You can write here, anyway I'm not providing incorporation or tax services.
Tx

 

[fshore]

You don't need to do paye if your not UK tax resident and don't work in the UK.