Remittance basis

Salary paid in UK and India

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If a director born in India (not domiciled in the UK) and is working for the UK company on a UK visa and working for the Indian group company where he is also a director and shareholder

He is paid a salary in the UK and India on the basis he is also working for the indian company.  Can he claim remittance basis and therefore his Indian Salary is not taxed in UK. ?

My issue is the Salary apportioned between UK and India is not a fair reflection of the work carried out in the UK 

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By taxdigital
07th Nov 2023 18:55

Remittance basis for a non-domiciled employee applies only in two situations:
a) overseas workday relief (s.26 ITEPA) which is not relevant here, and
b) remittance basis (s.22)

Remittance basis may apply in this case and to avoid any confusion I suggest:
i) having a separate contract of employment with the foreign employer,
ii) ensuring that duties of foreign employment are performed wholly outside the UK (s.23), and
iii) don't get caught by the anti-avoidance legislation (s.24A).

Oh check if the director being present here creates a PE (s.1141 et seq CTA 2010)

Thanks (1)
Replying to taxdigital:
By JimLittle
07th Nov 2023 22:07

Thank you this was most useful. I though so this was the case..

The difficulty is always splitting the UK and Indian Salary so it is commensurate with time spent.

There is a PE anyway and Corporation tax returns are being filed.

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