Non Resident Company Director Tax in the UK

In general, all UK company directors are required to submit tax returns every year to HMRC even if they don’t draw any income/dividends.

As always, HMRC guidance is not clear in case of Non-Resident Directors. HMRC still expects Non-Resident Directors to submit tax returns and penalties will be charged (sometimes up to 100% of tax due) if returns are not submitted on time.

Non Resident Tax

Saying that, it is once again, not easy for Non-Resident directors to submit their tax returns. To submit the tax returns in the UK, every director requires a tax reference number (called Unique Tax Reference Number). HMRC will not provide this to Non-Residents without a UK NI Number (National Insurance Number). NI Number is only provided to UK residents and hence the matter gets worse in case of Non-Resident Directors.

Saving Grace: The problem can be solved by writing to HMRC and advising them the Non-Resident Director is exempt from Self-Assessment as their only source of income is Dividends i.e., Disregarded income. It is always advisable to take professional help in this matter.

We at Companies999 will be able to take care of these matters.

Companies999 are Chartered Certified Accountants and Birmingham’s Best Company Formation Agent.

If you have any queries, feel free to contact Companies999 and we will be happy to help you!

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