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Where Taxpayers and Advisers Meet

Take Bonus After only 3 Months PAYE?

Barney2201
Posts:6
Joined:Thu Sep 23, 2021 4:14 pm
Take Bonus After only 3 Months PAYE?

Postby Barney2201 » Fri Mar 04, 2022 7:13 pm

We are a couple who own a UK company but live abroad in a low tax destination.

Until the start of this year we have always taken dividend payments from the UK company.

However... We now want to purchase a house and get a mortgage (overseas), payslips make life getting a mortgage much easier....

Have just put ourselves on the books for PAYE salary (NT as not UK resident).

Question is, can we take a bonus before our year end after only being on the PAYE books for 3 months or will HMRC not look favourably at this?

Not wishing to break any laws, but also would like to show max income through PAYE to increase our mortgage opportunities

pawncob
Posts:5089
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Take Bonus After only 3 Months PAYE?

Postby pawncob » Fri Mar 04, 2022 8:51 pm

You can pay yourselves as much as the company can afford. HMRC don't care, they'll just take the PAYE.
With a pinch of salt take what I say, but don't exceed your RDA

iwmtaxadvisor
Posts:45
Joined:Wed Sep 09, 2020 5:12 pm
Contact:

Re: Take Bonus After only 3 Months PAYE?

Postby iwmtaxadvisor » Sat Mar 05, 2022 3:18 pm

[b]Question as asked:[/b] Agreed makes no difference to HMRC when you take the bonus.
[b]By inference:[/b] I assume you want a mortgage - but my understanding is mortgage brokers will also take into account dividend income nowadays, as long as it has been consistent. It's a question of how they write up the application... they say.
[b]Idea:[/b] I am wondering if there is some mileage in considering if a salary can be paid by your UK company for duties performed entirely overseas - in the context where such earnings would become taxable in your country of residence under the DTT. You said it was low tax. If so, then there may just be a way to have income for mortgage purposes but low income tax. Complications abound of course. We might prepare a concept video on this if others said they interested. Just to be clear - there's no easy path through, one has to grind through the detail.
Robert Warren
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D&C
Posts:153
Joined:Mon Nov 25, 2019 11:35 pm

Re: Take Bonus After only 3 Months PAYE?

Postby D&C » Sat Mar 05, 2022 10:49 pm

Have just put ourselves on the books for PAYE salary (NT as not UK resident).
Have you just decided to allocate yourselves tax code NT or have HMRC issued an NT tax code in respect of this UK company?

If the latter what HMRC guidance have you followed to establish that operating code NT is appropriate?

Barney2201
Posts:6
Joined:Thu Sep 23, 2021 4:14 pm

Re: Take Bonus After only 3 Months PAYE?

Postby Barney2201 » Sun Mar 06, 2022 1:07 pm

At the moment we have just 'decided' to issue the NT code.

We are currently in a pretty 'unique' situtation...

As of today we are resident (inc tax) of the tiny island of Sark which has no Income tax, however....

In April we move to Portugal to hopefully take advantage of the NHR scheme, and we want to buy a house in Portugal with local mortgage.

Hence shifting to PAYE which in our current situation works but we will need to reconsider once we become Portugese tax resident.

If anyone is a professional accountant / tax advisor and can assist please get in touch.

Our current accountants are in Guernsey which is no good from a Portugese point of view so need to restructure our UK business and maybe look at a few different offshore locations for NHR.


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