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Posted Fri, 14 Jan 2022 10:36:16 GMT by yorkie1962
My girlfriend is the director of a UK Limited Company. She is a permanent resident of Cyprus and has been here 3 or 4 years. The limited company was set up after she moved to Cyprus. The company has set up a "branch office" and is registered as an Overseas Company in Cyprus. The purpose of the latter was to enable the company to register as an employer in Cyprus in order that both it and her could pay Social Insurance and GESY (equivalent to UK NI and NHS Charges) in Cyprus. She pays herself a salary as an employee only (No Directors Fees or expenses) as she is registered as employee of the company in Cyprus. She is tax resident in Cyprus and is registered for tax in Cyprus and declares her income for tax purposes in Cyprus. Her salary is set at a level that she is just below the Tax threshold in Cyprus. When she left the UK, she did not submit a P85 or advise the UK Tax Office she had left the UK. She does not physically work in the UK and has only been in the UK for a few days holiday since she left. Should she be filing a UK Tax Self Assessment Form ? Also, how does she obtain a "UK" non tax code now she has been a permanent resident in Cyprus for 3 or 4 years ? Can she submit a P85 now or should see use some other method, if so what ? Thanks, Neil
Posted Mon, 17 Jan 2022 14:25:52 GMT by HMRC Admin 24

If she is being paid through a UK payroll from her company then she will need to complete a P85 to advise that she has left the UK.

We can then review this for an NT code which will allow the income to be paid tax free.

If no income is received from the UK then no tax return is required, the P85 should still be completed to note that she has left the UK. 

Thank you.
Posted Tue, 18 Jan 2022 12:40:43 GMT by yorkie1962
Hi Thanks for the response. Just to clarify, the company is registered as an employer in Cyprus at it’s Cypriot registered office and has a Cypriot Tax registration for payroll purposes. All her salary and payroll deductions (Tax/Social Insurance/GESY) are in accordance with Cypriot tax and employment regulations . The company also holds Cypriot Employee Liability insurance in addition.. There is no UK payroll as the company is not registered as an employer in the UK. With this set up is a UK tax return required ? Sorting out the P85 will hopefully be straightforward to do. Thanks
Posted Wed, 19 Jan 2022 14:14:14 GMT by HMRC Admin 2

If this is not a UK company and she is non UK resident for tax purposes, then there will be no requirement for completion of a tax return.

You can check here for criteria for completion of a tax return:

Self Assessment tax returns

Thank you.

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