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We run a small accountancy firm that deals with many eastern European clients – mostly Polish. A National Insurance scheme has come to our attention which is targeted at people who live and run any sort of business in Poland and who permanently live and are domiciled resident and ordinarily resident for tax purposes there.
They have nothing to do with UK tax and National Insurance systems.
Under the scheme a business owner sets up a limited company in the UK becomes an employee of such a company and draws a basic (within their personal allowance) salary with the balance by way of dividends.
By doing so the business owner would not pay National Insurance contributions in the UK or Poland but within the EU laws they would qualify for full basic state pension and benefits in...
