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Any UK liability?

Overseas director not on PAYE

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I am looking at a company another client is purchasing.

One of the comany directors has been paid for some services directly outside of PAYE.

Director is located overseas in a non-EU country. 

I think PAYE ought to have been run here, but the director would have a NT tax code from a UK POV, but would there be employer NI arising in this situation?

I am just trying to estimate the cost of making this good.

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Caroline
By accountantccole
06th Feb 2020 12:09

Performing duties outside of the UK? I'd assume he'd pay tax via a payroll locally

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Replying to accountantccole:
By ireallyshouldknowthisbut
06th Feb 2020 13:55

Ah, fair point, I think I am getting confused about overseas companies and UK based employees.

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Replying to ireallyshouldknowthisbut:
Caroline
By accountantccole
06th Feb 2020 14:39

I'd be watching for branch issues too if he is doing much from overseas as a director

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By David Heaton
06th Feb 2020 17:51

He's taxable in the UK if he performs his duties in the UK (such as attending board meetings and client meetings here). If he's from a non-EEA state where the UK has a double tax treaty that does not grant him a UK personal allowance, he should be on 0T, not NT. Whether he's then also taxable in his home state is not a matter for your client, but will be determined by that state's domestic legislation and the treaty, if there is one.
The NI rules are different. Theoretically, there's a UK Class 1 liability if he's present, resident or ordinarily resident in the UK when working as a director, but there's an easement that lets foreign directors off the hook if their presence in the UK is only brief - check page 25 of the CA44 guidance on gov.uk.

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Replying to David Heaton:
By ireallyshouldknowthisbut
06th Feb 2020 18:22

David, I appreciate your high quality and comprehensive answer.

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