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TAX RESIDENCY

Can a Director (non-resident) still receive Directors fees in the UK?

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My client is non-resident for UK tax purposes. He would only be in the UK for not more than 60 days per annum.

He is a director of a UK company. Can he still receive Directors remuneration/fees even though he is non- resident? Would it affect his tax residency status if he received the remuneration under PAYE? There is no contract on this income.

For the purpose of preparing his tax return, assuming the remuneration does not affect his residency status, would supplementary pages on tax residency be required to be prepared?

Many thanks

Replies (5)

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By Accountant A
30th Jun 2019 12:49

Yes, the client does need someone to advise him on his tax affairs - or indeed an adviser for his UK affairs and another for his non-UK affairs.

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By Tim Vane
30th Jun 2019 13:04

If the director is non resident they would apply for an NT tax code. They would need tax advice in their country of residence to determine how to pay tax there.

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Replying to Tim Vane:
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By Vile Nortin Naipaan
01st Jul 2019 10:57

The suggestion is that the director would be performing the duties of his directorship on the (less than) 60 days that he is in the UK. I think they're taxable in the UK, subject to what the particular treaty says (but I have an idea that it won't change my basic assertion).

If some of the duties are performed in the UK and some are performed outside the UK, then the employer will need to make an application under ITEPA 2003, s 690, rather than just requesting an NT code.

Essentially though, I agree that the OP/end client should get proper paid for advice both in the UK and in their country of residence, rather than just asking random folk off the internet, wh have only got a small smattering of the facts.

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By gerrysims
30th Jun 2019 15:02

...and you need to think about tax in the wider sense e.g. social security charges. Particularly in his country of residence. So he needs good advice there.

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Caroline
By accountantccole
01st Jul 2019 11:31

Agree with Vile
Definitely need to be sure that he has taken proper advice where he is resident too. If carrying on some duties from abroad there could be branch issues depending on size/nature of business.

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