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Director Working abroad

NT coding and other issues

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The director is intending taking up permananent residence in Dubai. He will carry on working online for his UK based retailing company and will draw the same salary as he always has.

If he is working from a foreign base for a company that derives all of its income from the UK, is that still classed as "working abroad"? It just doesn't seem right to stop PAYE deductions when all he will do, in reality, is move home.

On the assumption that he is "working abroad", does an NT code have to be applied for and agreed by HMRC before use?

My knowledge on these matters is limited so help would be greatly appreciated and thanks in advance.

 

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Euan's picture
By Euan MacLennan
24th Mar 2017 13:44

He should submit form P85, on leaving the UK. Hopefully, this will prompt HMRC to issue a PAYE code of NT.

As he will not be working in the UK, he will not be subject to UK income tax or hence, to PAYE, so you could just apply a PAYE code of NT, but it would be better to write to HMRC to get their agreement if they do not issue such a code on receipt of the form P85.

He will remain liable to pay UK NIC for 52 weeks after leaving the UK.

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