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]

Is this understood correctly?

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

Do a non resident director have the full personal allowance?

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

 

[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]

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)."

Non-resident directors of UK companies and the tax implications

It is quite common for UK companies to have overseas-based individuals on the UK board. With the anticipated relaxation of travel restrictions and the return of the in-person board meeting, now is a good time to check your compliance processes.

www.rsmuk.com

The perils and pitfalls of non-UK resident directors | Tax Adviser

Lee Knight looks at the key PAYE considerations

www.taxadvisermagazine.com

As I said in my first post. The key is where the "role" is performed .