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Where Taxpayers and Advisers Meet

Question about a Bonus and NIC

Liveraa
Posts: 4
Joined: Thu Jun 07, 2018 11:01 pm

Question about a Bonus and NIC

Postby Liveraa » Thu Jun 07, 2018 11:07 pm

Hi guys,

I'm actually working with a friend of mine and he lives in Singapore. I'm in touch with him in a vast number of projects and recently we obtained a contract giving me access to a certain amount of money to finalize my initial work. I'm a director of a UK Ltd Company but i live in Paris with my girlfriend , we aren't resident in the UK : i wish to give him a bonus for obtaining me a contract which permits to gain more experience, should i consider paying taxes NIC Class 1 in the bonus or earning that i wish to give him ?

Thanks for your answers guys, it really helps me a lot and i don't want to be in trouble with HRMC.

AmanSood
Posts: 203
Joined: Mon Jan 09, 2017 4:12 pm

Re: Question about a Bonus and NIC

Postby AmanSood » Mon Jun 11, 2018 1:18 pm

If the friend is your employee and not UK resident/lives abroad then there's no requirement to pay Class 1 NIC as he's liable to social security in Singapore. This assumes the friend wasn't previously working in the UK. If your friend is self employed and not your employee then there would be no Class 1 NIC to pay in the UK.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
07792812038


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