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HMRC internal manual

National Insurance Manual

NIM12013 - Class 1: Calculating Class 1 NICs for Directors: Miscellaneous: Concession for non-resident Directors

Section 3 SSCBA 1992 & Section 6 SSCBA 1992

As an administrative concession, a non-resident director of a British or Northern Irishregistered company has no liability to Class 1 NICs on earnings received if:

  • the director only attends board meetings in Great Britain or Northern Ireland and



  • the director attends a maximum of 10 board meetings in a tax year, and
  • each visit lasts no more than 2 nights at a time; or
  • if the director only attends 1 board meeting in a tax year, the visit lasts no more than 2 weeks.

The earnings would be outside the concession under the first 2 dashed indents if therewere 11 board meetings in the tax year even though the visits might only last 1 nighteach. You should also not average the time spent visiting the United Kingdom(‘UK’) to see whether earnings fall within the concession because therequirement 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 1meeting 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 othercountries (NIM33014), need to be considered firstdepending upon the residence or nationality of the director. If, after considering thoseprovisions, there is still liability in Great Britain or Northern Ireland, the concessioncan then be considered.