|
I have been an employee for my wife's limited company since 1996.
I don't hold any shares but just take a salary of around 20K a year.
There is a possibility of my being asked to work abroad for one tax year. The rate that the limited company would get would be much higher so I feel that I am justified in getting a massive salary increase.
I have two questions.
1. If I am working abroad virtually for a full tax year, does that mean that I will not have to pay any tax on my salary? I would be spending only around 4 weeks back in the UK on holiday, the rest of time I would be working full time abroad.
2. If I am not liable for UK income tax - because I am working abroad - and I have significantly increased my salary, will that ring any warning bells at the Inland Revenue. They may think that I have increased my salary to avoid paying tax.
Any advice would be much appreciated.
--
Iggy
|
