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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4090
Experience:  FCCA FCMA CGMA ACIS
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Keith, I was thinking about paying myself GBP8060 or

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Hello Keith, I was thinking about paying myself GBP8060 or GBP10600 and then arranging for a payment of GBP3600 into a pension. I understood that what I earned in UK which in this case upper limit GBP10600 would only be subject to personal company NI contributions in UK, yet in Spain I would need to pay 25% tax at this level so would end up paying 25%. I am sorry for my ignorance on double tax treaty. At this stage I am not drawing a wage in Spain until the branch here starts business. As I am one of two shareholders and my partner who is Spanish and the major shareholder does not wish to take dividends it makes it difficult for my options.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer and pleased to bw able to help you with your question. Thank you for asking for me. You could pay more than GP 3600, this is the maximum you can pay if you have no earned income. If you have earned income then you or your employer ie the company, can pay up tpo 100% of your emoluments into a pension fund subject to an overall limit of 45K. As you have surmised you use the company route have to be careful not to exceed the NI lower income limit. If you do this the UK/Spain Double Taxation Convention is irrelevant. I do hope that you have found my reply useful.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.