Fees for non-UK NED

Fees for non-UK NED

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I was wondering if anyone had come across the following scenario (or knew how to address in theory):

M client (UK-based)  is looking to take on a Non-Executive Director (NED) who will predominantly attend board meetings in the UK. NED is resident and will continue to live in Germany. The NED, for commercial reasons, will raise fees via his German personal service company to my client.

I appreciate for PYE purposes the NED is an office-holder and therefore payments would ordinarily be subject to PAYE. However, due to the PSC being in place IR35 would need to be applied, providing the PSC an the NED were UK-resident.

Given the NED and PSC are based in Germany, am I right in assuming the offshore intermediary rules apply? On the assumption they do and the foreign PSC is not registered for UK PAYE and NIC, then the onus for operating PAYE & NIC would appear to fall on m client. This in turns raises two queries from my point of view:

1. How will our client operate PAYE on payments to the foreign PSC (what tax code is applied, will the NED be required to be on payroll and details submitted via RTI, will any NIC be due given they're only planning coming to the UK approximately 12 days in a year).

2. Will the foreign PSC be able to offset the PAYE liability against its equivalent of CT liability (or the individual against their IT liability)

Any help is gratefully received.

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