How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4414
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have a ltd company, and would like to make a colleague a

Customer Question

I have a ltd company, and would like to make a colleague a director of this company. This colleague lives in Sark and has an NT tax code. I have an annual turnover of under £80,000. Would this change the amount my company pays in tax annually?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith, a Chartered Secretary amongst other things, and happy to help you with your question.

A Director of an UK Ltd company need not reside in the UK, nor, indeed, need they be an UK Citizen. There must always be one Director in a private company. A Director of a Ltd company is an employee per se, there is no way around this and must receive emoluments under PAYE arrangements.

The tax code NT is a direction to an employer not to deduct Income Tax (IT) under PAYE, so that gets rid of that problem.

The amount of profit for Corporation Tax (CT) within the company would be reduced by any emoluments paid to the new director. Thus the CT liability would be reduced. There would be no IT to collect and pass across to HMRC quarterly in respect of the Sark director.

I do hope I have put your mind at rest on this matter and maybe also expanded your Company Law knowledge.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.