Foreign director of a UK limited company

[Juliet]

have a potential new client who is a Greek national living in Greece. He's looking to set up a UK limited company providing web/internet based services. Presumably he believes a UK registered website will have more credibility than a Greek one. He has no plans to come to the UK and plans to run everything from Greece.

If he puts himself on his company's payroll to receive a salary will he have to apply for an NI number. My initial thought is no as he's neither resident nor domiciled here. Also thoughts about EU-wide taxation agreements are swimming around in my head.

Is it the case that he can be paid gross without any deductions for tax/NI and then simply declare the income to the Greek authorities.

Grateful for your thoughts.

Regards

Juliet

[Taxbar]

Juliet,

Your client may need some more rounded international tax planning.

If you pay him salary you will need to set up a PAYE scheme and then apply for an NT code before you can pay him gross.

The NI Company charge maybe avoided if a suitable reciprocal agreement is in place with Greece.

Using a Company located abraod this avoids many issues.


Daniel Feingold
STP
info@stratax.co.uk