NI calculations with foreign income

[TykeMerc]

I will, but why is it better?

Mostly to make it simpler on administration.

[jamesbrown]

I will, but why is it better?

A variety of reasons. For example, you're working through a structure with limited liability, you can choose how to take (or not take) the proceeds as personal income in a given tax year, and you should be able to avoid any withholding at source (although this depends on the nature of the withholding tax).

[pork commando]

In future, I'd suggest you invoice through YourCo unless there's a very good reason not to do so.

I will, but why is it better?

[jamesbrown]

Thanks for answers.

The situation is like that: I'm a director of UK LTD company. But I also got some money from abroad. It's unrelated to the UK company, also UK agencies were not involved.

I'm not an employee of that foreign company, nothing to my knowledge.

I got that money directly from the foreign company. Monies were taxed abroad with the local rate, but NI were not deducted not there nor in UK (makes sense, right?).

Now I know that I have to declare all my income, including the foreign monies. I know that I have to tax them in UK and I know that I can deduce the foreign tax. Basically: I know how to calculate income tax.

What I don't know is how to calculate NI. From WTFH answer I guess I should treat it as if I were a director and self-employed at the same time, right? Director's NI from director's wage, self-employed NI from foreign income. Is that correct?

I will ask the accountant, but please give me some general advice so I know they're making sense.

Oh, in that case, yes, it's effectively self-employed income, separate from YourCo, which you'll need to include in your SATR at year-end, and you may be able to offset any withholding tax paid at source. In future, I'd suggest you invoice through YourCo unless there's a very good reason not to do so. Obviously, I don't know any of the context (residency etc.), so check with your accountant, but it will need to be included in your SATR.

[pork commando]

Thanks for answers.

The situation is like that: I'm a director of UK LTD company. But I also got some money from abroad. It's unrelated to the UK company, also UK agencies were not involved.

I'm not an employee of that foreign company, nothing to my knowledge.

I got that money directly from the foreign company. Monies were taxed abroad with the local rate, but NI were not deducted not there nor in UK (makes sense, right?).

Now I know that I have to declare all my income, including the foreign monies. I know that I have to tax them in UK and I know that I can deduce the foreign tax. Basically: I know how to calculate income tax.

What I don't know is how to calculate NI. From WTFH answer I guess I should treat it as if I were a director and self-employed at the same time, right? Director's NI from director's wage, self-employed NI from foreign income. Is that correct?

I will ask the accountant, but please give me some general advice so I know they're making sense.

[jamesbrown]

I assume you're an employee of that EU company, otherwise it would be a strange question. If so, see here:

PAYE20120 - Employer records: set up employer record: NI scheme - national insurance only

[WTFH]

Are you a Ltd company? Is your foreign work through a UK agency?
If the answer is yes to both, then:
https://www.gov.uk/self-employed-nat...nsurance-rates

If you are not a limited company or your agent is not UK based, then the minimum would be class 2.

[pork commando]

Hi folks.

I know that you'll tell me to ask an accountant, but I will ask here anyway.

How to calculate NI contributions when I have an income from another EU country?

I know how to calculate income tax. This time I only ask about NI.