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Salary for non-resident directors

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Hello, I'm a non-resident director of UK company and have never been to the UK nor plan to do so in the near future. Is any salary I take tax-deductible? Or am I limited to the £12.5k each year? Let's say I take £30k this year. Will I have to pay any taxes on that in the UK? And will I be able to deduct the full amount from my corporate tax? One more question, for any amount I take, does it have to be a regular amount each month or can I take any amount at any time? Thank you!

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By Paul Crowley
18th Apr 2021 16:14

Where is the company taxed?
Where is it operated from?
Solve that and you can solve the rest

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By Tax Dragon
18th Apr 2021 16:26

Agree. "My corporation tax" suggests "my company" suggests the existing tax analysis may be flawed.

As Aweb guesses go, this one might not be bad.

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Replying to Paul Crowley:
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By Anonymous
18th Apr 2021 16:34

Thanks for the reply.

I believe I have been wrong the whole time.

After asking this question, I kept reading many other threads and articles.
What I thought before was: Since the company is incorporated in the UK, it will be automatically subject to UK corporate tax and any dividends or salary I take will be subject to income tax in my country of residence (France in this case). That sounded logical since the company and I are different entities.

But after the reading, I found out it was not that simple. So because I'm the sole owner and director, and I run the company from France. The company may be subject to French tax on companies even though it's a UK company!

What do you think?

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By Tax Dragon
18th Apr 2021 17:38

I think you have reporting responsibilities in both countries. Where tax falls due depends on factors you haven't told us about. But I'd definitely be talking to an accountant in France, in your situation.

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By Anonymous
18th Apr 2021 18:39

Thank you! I appreciate it.
I'll certainly contact a professional here in France.

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Replying to :
Caroline
By accountantccole
19th Apr 2021 12:33

We have a mix of clients with French branches or separate French businesses to deal with the fact you are generating profits on French soil and should be in the French system for social charges etc.
Message sent

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By paul.benny
18th Apr 2021 19:11

accountantccole posts here regularly. She is, I think, a British accountant working in France. She may be able to assist you.

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Replying to paul.benny:
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By Anonymous
18th Apr 2021 20:11

Hello Paul,
Thanks a lot! I'll reach out to her.

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Replying to paul.benny:
Caroline
By accountantccole
19th Apr 2021 12:30

Thank you Paul - yes we can help

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Replying to paul.benny:
Caroline
By accountantccole
19th Apr 2021 12:31

.

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By Matrix
19th Apr 2021 06:30

It seems that everyone wants to set up a UK company. Is the UK some kind of (perceived) tax haven?

(Rhetorical since I know it isn’t.)

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Replying to Matrix:
Caroline
By accountantccole
19th Apr 2021 12:34

Tell me about it!

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