Overseas Director?
Discussion
pontypool said:
Had a search of PH but no results for my question..
Can a person who is resident in another country be a Director of a Ltd company registered here in England?
Yes they can, provided that they meet the other criteria.Can a person who is resident in another country be a Director of a Ltd company registered here in England?
Since 1 October Directors no longer need to register their residential address with Companies House, so it would be acceptable for them to have another UK address (the COmpany's registered office?) for service provided that the Company keeps a register of residential addresses. This isn't necessary, but sometimes makes things easier.
ETA: Typed response but forgot to click submit
Edited by therealpigdog on Thursday 15th January 17:24
It's not that unusual to have directors who are based overseas. Of course, this can cause complications when it comes to the company making sure it treats his income from the company properly for tax purposes. Just because the individual is overseas doesn't mean that the company can assume that UK tax is not relevant.
Not as simple as that.
If the individual is permanently resident outside the UK, they may not be liable to any UK tax at all. However, if they split their time between the UK and their country of residence, there may be a requirement to deduct PAYE.
There are also NI issues to consider too.
Finally, other forms of payment to a director (e.g. loan repayments, interest on loans made to the company by a director, dividend payments to a shareholder/director) will have have different tax declaration and reporting requirements depending on the individual's residency status.
If the individual is permanently resident outside the UK, they may not be liable to any UK tax at all. However, if they split their time between the UK and their country of residence, there may be a requirement to deduct PAYE.
There are also NI issues to consider too.
Finally, other forms of payment to a director (e.g. loan repayments, interest on loans made to the company by a director, dividend payments to a shareholder/director) will have have different tax declaration and reporting requirements depending on the individual's residency status.
ok, so it seems there is more to it than meets the eye.
In a nutshell the chap is permanent resident in South Africa since he married a girl from Jo'burg and emigrated and has no ties to the UK whatsoever any more, apart from the occasional holiday back here to see us all for a week or two.
In a nutshell the chap is permanent resident in South Africa since he married a girl from Jo'burg and emigrated and has no ties to the UK whatsoever any more, apart from the occasional holiday back here to see us all for a week or two.
pontypool said:
ok, so it seems there is more to it than meets the eye.
In a nutshell the chap is permanent resident in South Africa since he married a girl from Jo'burg and emigrated and has no ties to the UK whatsoever any more, apart from the occasional holiday back here to see us all for a week or two.
and of course ensure that he is aware of his duties as a director. if he is rarely in the UK then he will need to ensure that he is appraised of the company's performance somehow and attends (by phone if allowed) board meetings and the like. ignorance would not be a defence.In a nutshell the chap is permanent resident in South Africa since he married a girl from Jo'burg and emigrated and has no ties to the UK whatsoever any more, apart from the occasional holiday back here to see us all for a week or two.
Just noticed this topic.
I started paying Italian taxes when I moved to Italy, setting up as a professional, but have left my Limited company (I am company director)live in the UK intact. Am so glad I did now!
Because of the obscene tax and insurance rates here (40% personal tax which has no starting rate like the UK), VAT and worst of all, the Italian form of national insurance, which is 24% of your TOTAL earnings, I have no choice to but stay 6 months in the UK and 6 months in Italy, so that I can have my invoices paid into my UK Limited company account (21% Corporation Tax, very small NI contributions, as I have my own pension, and under VAT qualifying turnover)
This is a problem of my own making, as I didn’t look into the sheer amount of tax I was liable for in Italy – at the very least, they take half your total income. If I stayed permanently in Italy, I would be hard pressed to pay for my UK pension – and my Italian accountant informed me that I probably wouldn’t see my pension anyway!
The UK isn’t as bad as some may think when it comes to tax!
I started paying Italian taxes when I moved to Italy, setting up as a professional, but have left my Limited company (I am company director)live in the UK intact. Am so glad I did now!
Because of the obscene tax and insurance rates here (40% personal tax which has no starting rate like the UK), VAT and worst of all, the Italian form of national insurance, which is 24% of your TOTAL earnings, I have no choice to but stay 6 months in the UK and 6 months in Italy, so that I can have my invoices paid into my UK Limited company account (21% Corporation Tax, very small NI contributions, as I have my own pension, and under VAT qualifying turnover)
This is a problem of my own making, as I didn’t look into the sheer amount of tax I was liable for in Italy – at the very least, they take half your total income. If I stayed permanently in Italy, I would be hard pressed to pay for my UK pension – and my Italian accountant informed me that I probably wouldn’t see my pension anyway!
The UK isn’t as bad as some may think when it comes to tax!
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