UK National insurance contributions for expats - Limited company?

[Chrisexpat]

Hi,

I am non resident in the UK but would like to ensure that my NI contributions stay up to date.

Would a solution be to set up a UK ltd Company and pay myself a minimum salary say 10K through that company?

I have no other UK based income so as a non-resident would not be liable for any tax since the salary is under my allowance, but would my national insurance payments be covered or could I pay them more cheaply than paying the £700 a year voluntary contribution rate?

Thanks for any advice

 

[Becky]

The course of action depends on how long you will be abroad for and which country you are going to. Lots of useful information here:

https://www.gov.uk/national-insurance-if-you-go-abroad

 

[Chrisexpat]

I am a long term non-resident (20 yrs plus) self employed overseas so my only option is to pay voluntary contributions at £750 ish a year. If I set up a ltd company as above, it would cost me nothing apart from the admin costs of the company as far as I can see.I could fund the company from my UK savings and pay myself back a minimum salary. Is there anything in this approach that would not be legal?

 

[Becky]

That won't work if you don't have a requirement to pay NICs in the UK...

https://www.gov.uk/guidance/paying-employees-working-abroad

Plus if the purpose of the company is tax avoidance then HMRC will not look favourably on it.

 

[Chrisexpat]

I do have a requirement to pay the NICs.

There is no tax avoidance, I would actually be paying tax twice since I have already paid tax on the money I am putting in and then I would pay it again when I take it out. But as long as it was below my personal allowance and above the minimum to receive NICs then I would not be taxed on the salary as far as I can see but would still receive NICs

 

[Becky]

I would strongly recommend you seek professional advice before taking any action.