Non resident director-Class 1A NIC payable? | AccountingWEB

Non resident director-Class 1A NIC payable?

I have a client who is a director of a property rental company incorporated in the UK.He emigrated to Portugal over 10 years ago and is non resident and probably non domiciled in the UK now.He lives in Portugal now with his family and his returns to the UK are infrequent.
In the course of preparing the company accounts I have discovered that he has overdrawn his directors loan account in 2006/2007 by a very large amount.He does not draw a salary from the company and there is no PAYE scheme set up.The director in question manages the company property portfolio from Portugal and any board meetings will take place there.Although he comes to the UK to check on the properties occasionally it appears to me that the duties of his employment are largely carried out in Portugal.
Am I correct in believing that there is no liability to income tax under the benefit in kind provisions,and therefore no liabilty to Class 1A NIC on the company?I accept that the company will be liable to corporation tax under Section 419.

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write it off

carnmores |
carnmores's picture

Maybe no free lunch

J Lessels |