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National Insurance

Posted: Sun Feb 11, 2018 12:54 pm
by casella
I am a director of a limited company in the UK.
I now live permanently in Germany, and plan to stay here (married with child).

If, for example, I took a salary of £50,000 yearly from my UK company, would I or the company need to pay any national insurance?
Meaning, with the £11,500 personal allowance I would pay about £9700 income tax and have a take-home income of about £40,500?

Also, am I correct in thinking that by doing this, I would reduce the taxable profits of the company by £50,000? (meaning that, for my "part" of the gross profits, there would be no corperation tax to pay).

I ask, because dividends are taxed at 25% in Germany, meaning the standard "take minimal salary and the rest as dividends" is perhaps not the best way to go.

Many thanks for any insights :)

Re: National Insurance

Posted: Tue Feb 13, 2018 2:58 pm
by GlobalTaxAdviser
Hi

Assuming you are non resident on UK and Resident in Germany - anything you take out in salary and Dividends would be taxed in Germany. Corporation Tax can be set off against the Salary deduction.

No UK tax on Salary as long as there are no UK Duties

Kind Regards

GTA