Hi, We are planning to set up a Sub in UK with our parent firm registered here in UAE. We have an employee based in London,
1) Can we hire the UK employee pay his/her salary directly from UAE? (Who takes charge of NICs)
2) If UK Sub has no Bank account, and Employee is hired for client Servicing in UK - how do we pay Salary to Employee - parent company can do this?
3) UK Sub will not invoice clients, only parent company will, does the UAE company charge taxes for services provided to UK clients (even though UAE is tax free)
Please assist Thank you
Replies (9)
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You've told us what the UK sub won't do - it won't have customers assets or employees. You haven't said what it will do.
Which entity do you want to pay the UK tax arising? That might influence how you structure the finances.
This is much too complex for you to rely on a web forum post. The UK worker can be employed and paid from anywhere, but the structure of the contracts and flow of services will determine who has to pay what and where in tax terms. There are numerous permutations for PAYE, NIC, VAT and corporation tax for the UAE parent and the UK sub.
But thank you for the light relief in January.
The recruitment of a UK legal firm and a UK accountancy firm would indeed be in order.