Director, and Employee in UK. Now moving country..

I'm director, employee of company in UK. Now moving country. Can I invoice the business?

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I am the director and shareholder of a UK business. I also happen to be currently employed by said business in UK via regular payroll. I don't receive extra renumeration for being a director.


I am now planning on moving countries, and I would to understand what the best way would be to get paid by the UK business. Ideally I invoice my own business on a regular basis for services provided. Either as a sole-trader (from abroad) or through an entity that I could setup abroad. This income would naturally be taxed in my new tax residence (abroad). Ofc I still have to perform UK director duties, for which I need to be paid through UK payroll and taxed in the UK too.


Are there any issues with this?:

- providing my director duties for free? ie not need to be on the UK payroll for this

- invoice my own company for employment services from a foreign entity?


I imagine transaction with a related party would have to be disclosed as part of the audit, but would this ring any alarm bells?


Thanks in advance!

Replies (4)

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By David Ex
05th Aug 2022 00:24

We know nothing about you, your circumstances or even the country you are moving to. If you think you’ll get to an optimal outcome without taking UK and overseas (paid for) advice on your particular circumstances, you’ll end up regretting it.

Professional advice that adds value costs money like most things in this world.

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Replying to David Ex:
By juliandreest
05th Aug 2022 23:50

Thanks a lot David!

Do you happen to know anyone who would be an expert on this for the UK?

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By williams lester accountants
05th Aug 2022 08:08

Get paid for advice from your accountant!

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By Tax1976
05th Aug 2022 08:22

There are a few issues here.

In all areas, you'll need to review the relevant double tax treaty provisions.

Generally as a non-resident carrying out duties wholly overseas there will be no tax on employment income but also you'll need to factor in the social security contributions position which can be different.

If you 'traded' as a sole trader again generally if the business is carried on overseas by a non-resident there will be no UK tax although there are exceptions (e.g. certain business activities relating to UK land including dealing/developing).

Also watch for company residence issues - in some cases you may inadvertently cause the company to become resident overseas and so have to register the company for local taxes overseas. If it becomes 'dual resident' you will need to consider the 'tie breaker' clause in the relevant double tax treaty. There could be further tax liabilities if the company is deemed to have emigrated.

If you ever return to the UK, you will need to review the temporary non-residence rules to ensure you don't get a nasty 'welcome home' present from HMRC in the form of tax on certain income and/or gains received/made while abroad.

Also note if you pay yourself what HMRC may successfully argue to be over the market rate, they could disallow some of your salary/consultancy cost for UK corporation tax purposes on the basis it is not 'wholly and exclusively' for the business.

As you say, you'll need to get local advice as well as UK advice; it is worth noting that in the UK, HMRC are strict when considering whether someone is self-employed versus employed due to the difference in tax rates/NIC applying. Check that there is not something similar in the country you are going to.

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