One person UK Non Resident / Citizen Director's Salary + Tax

One person UK Non Resident / Citizen Director's...

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My friend is a Sri Lankan citizen living and  a resident of UAE (working in Dubai).  

He is planing to open a UK Ltd company for his online business.  All the work related to his new UK company will be done by him being living out of UK, so it will be a one person company (no other staff involved).  

He would like to have your professional suggestions on the the following :

1.) Can he draw a salary from his own UK company?

2.) If he can draw a salary is this salary taxable in UK? (it is not taxable in UAE)

3.) Is there any PAYE registration needed for his company?

Thank you

Replies (3)

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By eastangliantaxadvisor
03rd Nov 2012 17:22

1. Yes, of course he can draw the salary from the UK

 

2. It "may" be taxable here - You will need to convince HMRC that the director never comes to the UK, and the duties are all performed outside UK to ensure that the salary is not subject to PAYE

 

3. Yes - HMRC would expect the company to be PAYE registered.

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Replying to DJKL:
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By Ratukukula
05th Nov 2012 08:23

Thanks for the reply.  

Thanks for the reply.  

Is there any option to avoid PAYE? Such as drawing from the dividends etc?

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By eastangliantaxadvisor
05th Nov 2012 11:05

Yes. Dividends will avoid paye. Make sure there are sufficient profits though

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