1. Global Tax Insight Tax risks and opportunities when sending employees and directors to the UK 28 January 2016

2. Blick Rothenberg LLP – who we are Employee and directors UK tax? UK payroll / social security? Opportunities recent changes Companies UK tax? “Branch” Subsidiary Agenda

3. Employee and directors

4.  No UK-Brazil income tax treaty!  UK tax from day 1 (no 183 day exemption)  UK statutory residence test  Non UK tax resident – UK source  UK resident – worldwide income versus “remittance basis”  Unilateral credits to avoid double tax When is UK employee tax due?

5. Key opportunities to save UK tax  Temporary living expenses <24 months  Deductions for work outside the UK < 36 months  Shelter offshore income – remittance basis

6.  “UK presence” or “UK host” organisation?  UK tax – operate UK payroll withholding from day 1  Employee versus self employed  STBV – treaty residents only UK employer obligations

7.  Some common payroll misconceptions XBrazilian withholding XBrazilian employee XSalary paid Brazil If a UK “host employer” - operate a UK payroll  Cash flow management  Non resident directors:  Tax returns  Expense reporting UK employer obligations

8. Social security tax (employer and employee)  Different rules!  52 week - exemption from UK social security tax provided  Remain employed outside the UK  Ordinarily live outside the UK  Pay from week 52 – no notification from HMRC  Other nationalities/residents – Certificate of coverage / A1

9. Latest updates  HMRC guidance on expenses  Changes to expense reporting / “dispensations” (6 April 2016)  Pension contributions -> £10,000 (6 April 2016)  Deemed domicile > 15 years (6 April 2017)

10. Companies

11. UK Business – when is tax due? “PLACE OF BUSINESS” – Business Establishment not taxable Ancillary or incidental to business as a whole Checking out the market Administration office Registration at Companies House Payroll obligation Generally not subject to corporate tax

12. UK Business continued … “BRANCH” – Business Establishment taxable Trading presence Move from ‘representative office’ to branch Registration at Companies House Tax considerations File accounts of overseas company No audit

13. UK Business continued … SUBSIDIARY COMPANY Limited liability Incorporation at Companies House UK audit, if two of the following breached on a group basis: (a)revenues > £6.5m; (b)total gross assets > £3.26m; (c)employees > 50

14. Contact us Mark Abbs Tel: +44 (0)20 7544 8744 Email: mark.abbs@blickrothenberg.commark.abbs@blickrothenberg.com