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Moneysoft overseas Director

piratepirate Trusted RegularRegistered Posts: 469
Hi

I use moneysoft for Payroll.

I have a director who is not in the UK nor a UK citizen. Single Director only person in thecompany

He is asking me about earning a salary.

Clearly he will need to seek local advice regarding tax and their equivilent of NI. (social) on earnings from this UK company

But does anyone know what I need to do to set this person up in Moneysoft.

Do I need to register as an employer?
What tax code and NI do I use? Thinking of NT and X
Do I need to get authorisation from HMRC to use NI code X and a different tax code.

Thanks in advance.

Comments

  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    pirate wrote: »
    Hi

    I use moneysoft for Payroll.

    I have a director who is not in the UK nor a UK citizen. Single Director only person in thecompany

    He is asking me about earning a salary.

    Clearly he will need to seek local advice regarding tax and their equivilent of NI. (social) on earnings from this UK company

    But does anyone know what I need to do to set this person up in Moneysoft.

    Do I need to register as an employer?
    What tax code and NI do I use? Thinking of NT and X
    Do I need to get authorisation from HMRC to use NI code X and a different tax code.

    Thanks in advance.

    "Coding for payroll purposes for non-resident employees who have never been resident in the UK
    Where a business in the UK or the UK branch or office
    of an overseas business employs an employee who is
    non-resident, and:
    • the employee is working wholly outside the UK
    • the employee has not been resident in the UK before
    • the employee does not intend to and will not perform any duties in the UK.
    Code ‘NT’ may be used for payroll purposes if the paying system demands a code number.
    No P14 or entry on the P35 is required and there is no liability for NICs.
    If the residency position of the employee or the place the duties are performed change so that the employee becomes liable to UK tax, you should immediately stop using code ‘NT’ and follow the P46/P46 Expat procedure, as if the employee is a new employee with no P45."

    Page 58 (or page 63 of the pdf) of HMRC CWG2(2012) Employer Further Guide to PAYE and NICs
  • piratepirate Trusted Regular Registered Posts: 469
    Duhh RTM

    Thanks for that...

    I was looking and looking in the manual and couldnt find it must have been staring me in the face.

    So also no need in fact to register as an employer either in this case!!

    many thanks again
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