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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4188
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I have limited company in England and it has some overseas

Customer Question

I have limited company in England and it has some overseas director. Can they get salary? If Yes how I'll process in payroll as they do not have national insurance number.
Second I use my home for business. Can I claim rent or interest on mortgage and do I need to declare in Self Assessment or need to fill any P11 type form?
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 be able to help you with your question. There is no requirement for any UK company to have shareholders or directors who are British Citizens nor need they live in the UK. Yes they can be paid a salary, but as you have noticed here you hit a snag. Directors are employees per se and must be paid through PAYE channels. HMRC view any 'out of PAYE' transactions with the deepest of suspicion and, despite your company's inability to operate in the RTI environment without a NI Number, may well continue to insist on the use of PAYE. You must approach HMRC to request a waiver in respect of this director. Alternatively, the next time he comes to the UK, get him to apply for a NI Number on the grounds that he needs one so his director's fees can be paid. Regarding using your home as your business it is normal to allocate one room for this purpose. You can then offset housing bills pro rata against company income. I prefer to use a floor area over the total house area to obtain a proper apportionment ratio. This is not an item appropriate to the PD11 form. I do hope that you have found my reply of assistance.
Customer: replied 1 year ago.
Relist: Incomplete answer.
Expert:  bigduckontax replied 1 year ago.
This question has reappeared on my list with no follow up so I am posting to clear my list.