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

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DanialN

New member
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
 

cangarooo

Offshore Agent
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?
 

cangarooo

Offshore Agent
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

New member
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

Offshore Agent
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
 

AndyAresa

New member
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

Offshore Agent
@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.
 

AndyAresa

New member
@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

Offshore Agent
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.
 
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