As an administrative concession, a non-resident director of a British or Northern Irish registered company has no liability to Class 1 NICs on earnings received if:
The earnings would be outside the concession under the first 2
dashed indents if there were 11 board meetings in the tax year even
though the visits might only last 1 night each. You should also not
average the time spent visiting the United Kingdom
(‘UK’) to see whether earnings fall within the
concession because the requirement is that each visit lasts no more
than 2 nights.
Similarly the earnings would not be exempted from Class 1 if
there were, say, only 1 meeting attended and the visit to the UK
lasted 3 weeks.
However the European Council Regulation covering the European
Economic Area (
NIM33001), or Reciprocal Agreements with
other countries (
NIM33014), need to be considered first
depending upon the residence or nationality of the director. If,
after considering those provisions, there is still liability in
Great Britain or Northern Ireland, the concession can then be
considered.
