We live in a world of mobile working where individuals can be sent to work around the world for their companies. Many of these companies are not international businesses and so we have to understand how that individual should be taxed in each jurisdiction. We have had a number of examples of this in the last few years and an example is considered below, looking specifically at coming to work in the UK from Australia.

Coming to work in the UK from Australia

This case study looks at where we had an individual come from Australia and their employer was therefore based outside of the EU.

This employer has no base of operations in the UK and so again, have not registered with the UK tax authorities.

In this situation, it is the employee who is registered as the PAYE scheme and because an employee is not a company, only PAYE and employee National Insurance is payable.

This ensures that the individual’s tax position is fully covered in the UK but creates a saving of the employer’s National Insurance for the overseas company. The employee is liable to settle these amounts and it can be that the company makes a direct payment to HMRC but should payment not be made, HMRC will direct any collection to the individual. It is important therefore that the employee and overseas company have an understanding as to whom is making the payment, as strictly the employer should make a gross payment to the individual and they settle the liability.

Many of these scenarios can be looked at in the reverse when UK employers send employees overseas and this will be considered in separate case studies.

If you find yourself in a sililar situation where you are coming to work in the UK from another country or if you have any questions about your current tax arrangements, please get in touch.


Related Content:

  • Sending an employee to work abroad – Peru
  • Sending an employee to work abroad – Norway
  • Sending an employee to work abroad – Spain
  • Case Study: Coming to work in the UK from Poland

Posted by Lucy Orrow

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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