I have a client that is a director/shareholder of a small limited company in the UK and is a UK resident. They are also on the payroll of a company in the Isle of Man for work done over there for another company (which they have no shares nor are a director). It does not amount to a significant amount but they are having PAYE deducted at source in the IofM. Is this correct? If so, how would you treat this on their personal tax return? It may sound like a dumb question but I rarely deal with much by way of foreign employment income.
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To the best of my knowledge
A non resident of the Isle of Man is not entitled to a personal tax allowance. All IOM source income is liable to IOM tax.
Details of the gross income received, together with tax deducted at source, goes in the Foreign section of the UK tax return.