Is PLR subject to Income Tax and VAT?
Payments to UK residents will be made without deduction of tax. You should include details of the sums received as income in your tax returns. However, for non-UK residents, the PLR office is obliged to deduct tax before payment is made. Payments to non-UK residents will be subject to tax at the basic rate, under Section 536 of the Income and Corporation Taxes Act 1988. Tax exemption can be applied for by contacting HM Revenue & Customs Centre for Non-Residents PLR is outside the scope of VAT and should not be declared on VAT return forms. In cases of difficulty your local VAT offices should be asked to refer to VAT Administration Directorate (VAH2) quoting reference TL1158/82.
Payments to UK residents will be made without deduction of tax. You should include details of the sums received as income in your tax returns. However, for non-UK residents, the PLR office is obliged to deduct tax before payment is made. Payments to non-UK residents will be subject to tax at the basic rate, under Section 536 of the Income and Corporation Taxes Act 1988. Tax exemption can be applied for by contacting HM Revenue & Customs Centre for Non-Residents Double Taxation Treaty Team. PLR is outside the scope of VAT and should not be declared on VAT return forms. In cases of difficulty your local VAT offices should be asked to refer to VAT Administration Directorate (VAH2) quoting reference TL1158/82.
