PAYE

PAYE

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Hi

i have a client who is working(and is also a director) for a subsidiary of a UK company, except that the subsidiary is now a stand alone company in its country.

Where previously the UK paid the salary for this person and then recharged the subsidairy it stopped doing that some months back. So at present my client is taking hi full salary(what would have been recharged ) and realises that he needs to pay the tax element of his salary.

Which would be the most tax efficient way to pay this tax ? Go back to the UK company and ask them to pay it on his behalf, for the months that he has missed or set up a new UK division and pay it through this new company. I understand he is keen to be an employee of the company.

Sorry if my question is a bit fluffy, i really do not have a clue when it comes to tax!!

Hopefully someone understands what i am saying here!

Look forward to a response

KB

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By mark hodges
15th Mar 2012 11:14

Which Country?

KB It is difficult to tell from your question in which country and which company your client is employed by.

If he is employed by a company outside the UK, and is working outside the UK, then there may be no PAYE liability - it's difficult to tell from your question.  Being paid and being subject to PAYE can be completely different - perhaps the UK company are treating him as an arms length consultant.

If this isn't an area in which you have expertise then I would suggest, as I always do, that you get some detailed edvice from someone who does, as finding out all the facts and providing advice based on those is difficult on a BB.  I would be more than willing to help (PM me), as I'm sure would others on AW.

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