Director of UK Ltd Company - tax implications

Director of UK Ltd Company - tax implications

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A new client moved from Bulgaria a year ago to UK and set up a ltd in UK then. Ltd returns were filed but the Company is still not making profit yet and he is living off savings and no salary or dividends from the Ltd yet. What is the tax registration requirements for the director. Is he legally required to register for self-assessment as a director and NI. He is keen to pay NI voluntarily to meet his visa requirements.UK Ltd company has 1 director (him) and no employees (it does not intend to have any employees).

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Euan's picture
By Euan MacLennan
02nd Jul 2014 16:36

No legal requirement

... to notify chargeability (register for SA) just because he is a director or even, if he is receiving salary under PAYE and dividends unless the gross salary and grossed-up dividend, together with any other income he might have, put him into the higher rate tax band.

If he needs actually to pay NIC to meet a visa requirement, he can pay the voluntary Class 3 NIC of £13.90 a week (£722.80 in 2014/15).  If NIC credits are sufficient, he could pay himself a salary from his company of £5,772 or if he really needs actually to pay NIC, the salary would have to be above £7,956, but in either case, the company would have to apply for a PAYE scheme.

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