Simple? Is it!

[Dutchnick]

I have registered a UK Ltd to receive a once per year a dividend cheque. After various costs I will have the balance as my income. I assume that that on drawing that balance from the company it will count as income and should be the amount that I declare as such. I am not UK resident, will I have to pay NI and secondly if I do not take all the money out and leave it in the company do I pay tax on what the company holds or is it only on the amount withdrawn?

 

[Mitchells Bristol]

Hello there

Yes - you are correct. The dividends you receive from the other company will not be liable to corporation tax, and therefore once you have paid any costs you incur, the balance is available for you to draw.

Typically the money will be drawn as either a salary or a dividend. Any undrawn monies left in the company will not be liable to tax.

As you are non-resident, providing none of the duties you are performing in relation to the company are carried out in the UK then there will be no UK tax to pay on either a salary or a dividend drawn. I would therefore suggest you take local tax advice in your country of residence to establish whether it would be more beneficial to draw your remuneration as a salary or a dividend from a tax perspective.

Hope this helps