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F. Naz
F. Naz, Chartered Accountant
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My question regarding director of limited company registered

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My question regarding director of limited company registered in uk but the director lives outside UK , does he needs to have a national insurance number ? for any reason
Let me go through it thnx
Customer: replied 3 months ago.
Ok no problem
Customer: replied 3 months ago.
I am having a hearing condition preventing me from talking on the phone , please type the answer instead , thanks
Okay will update you
Customer: replied 3 months ago.
When ,
Customer: replied 3 months ago.
In couple of hours
Do the director having any income in UK?
does your director perform duties in UK?
Customer: replied 3 months ago.
It's only 1 director and holding 100% of shares and lives outside uk , no any othee income from uk
Is he getting any salaries or fees for being a director from the company?
Customer: replied 3 months ago.
He still not sure how it's going to work , but he will be the only one in the company, as the company just being registered with the company house last week
Please read the below info as it will help you to solve your issueNon-resident directors of UK companies and the tax implications
In an increasingly globalised world, it is quite common for overseas directors of UK companies to visit the UK for short term business trips. UK companies should be aware that such business trips can trigger tax and NIC requirements under PAYE in the UK.Background
Non-UK resident directors of UK companies visiting the UK for business are office holders and salaries or fees paid to them should be subject to UK tax under PAYE. This is the case even if the overseas director spends only one day working in the UK during a tax year, or if they only visit the UK to attend a single board meeting in a year. Tax treaties will not normally offer protection from UK tax in these circumstances and so such directors must be considered separately to other short-term business visitors to the UK.Employee’s and employer’s Class 1 NIC may also be due under PAYE on salaries or fees paid to non-UK resident directors. For NIC, however, there are potential concessions and regulations which, if relevant, may ultimately mean that there is no liability for UK Class 1 NIC on the director’s earnings.The Issue
HMRC are aware that UK companies with non-UK resident directors who work in the UK often overlook the requirement to operate PAYE on their earnings. As a result, this has become an area of compliance which we are increasingly seeing HMRC check during reviews of company records. It is also a relatively easy issue for HMRC to spot. For instance, a simple check of Companies House records or a UK company’s website will often enable HMRC to identify that a UK company has an overseas director who may be working in the UK.Complexities can also arise where the overseas director is paid a single salary in respect of a global role which involves employments and directorships with a number of different entities as it will be necessary to establish the proportion of that salary which is attributable to the director’s UK duties. There can also be employment tax and NIC obligations and liabilities to consider in relation to expenses and benefits provided to the director while they are working in the UK.Non-compliance can lead to significant and unexpected liabilities for UK companies. For example, where PAYE is not applied when it should be, and the UK company is found not to have exercised reasonable care, HMRC can go back six tax years to recover the underpaid tax and NIC from the UK company, together with penalties and interest charges.What should companies do?
All UK companies with overseas based directors should consider whether those directors perform duties in the UK. Where those directors are performing duties in the UK the UK company should urgently consider whether its tax and NIC obligations are being fulfilled. In particular, UK companies in this situation should consider:how to calculate the appropriate level of earnings (including expenses and benefits) which are attributable to UK duties, and how these earnings should be reported to HMRC;
the requirement to obtain a special direction from HMRC which will allow the company to deduct tax only from the proportion of the director’s salary or fees which are attributable to estimated UK duties;
whether the director’s earnings are liable to employee’s and employer’s Class 1 NIC, or whether concessions or regulations apply which remove this requirement; and
discussing the double taxation issues with the director concerned where they are also paying tax on these earnings in another jurisdiction, and alerting the director to their requirement to complete a personal tax return in the UK in respect of the UK directorship.
If a non-resident director is working wholly outside the UK, has not been resident in the UK before, and does not intend to perform any duties in the UK, it is unlikely that there will be any significant UK PAYE obligations associated with the appointment of the non-resident director. But when the non-resident director starts to work in the UK, the UK company will quickly acquire such a PAYE obligation.In addition, it depends on the way how you will take profits out of the company,I think if you take profits via dividends or director loan then there would be no need of NIC, as dividends payments are not subject to NiC and in loan treatment i did not see any requirement of NIC.But if you take other ways to take out profit like taking salaries or claiming expense then i think you will need NI number.Below link contains details for this
Link: - https://www.google.com/amp/s/www.rapidformations.co.uk/blog/how-to-take-money-out-of-a-limited-company/amp/References :- https://www.taxadvisermagazine.com/article/perils-and-pitfalls-non-uk-resident-directorshttps://www.rsmuk.com/ideas-and-insights/non-resident-directors-of-uk-companies-and-the-tax-implicationsNote :- if you find my helpful then kindlyra rate it or accept it so i can get credits for my efforts.
As you already said that company is registered so i am not going into that matter whether a foreign director will need ni number to get register the company
If you still need to know anything kindly let me know, thanks.
References :- https://www.itcontracting.com/limited-company-dividends/
Hello
Just a reminder, did you read my info, was it helpful?Note :- if you find my helpful then kindly rate it or accept it so i can get credits for my efforts.
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