Non-resident, working remotely: PAYE and other tax obligations.

I am a South African resident and tax citizen; I have never been a UK resident, and I have no intention of becoming one or spending close to or more than 183 days a year in the UK. I do not have a UK bank account. I have been offered a senior position in a UK-based charity with no office in South Africa. They will pay me monthly, into my South African account. Based on how I read the legislation, they can employ me using a standard employment contract, and there is no obligation for me to pay UK tax. As a South African tax citizen, I must pay tax on the money paid into my South African bank account. There was concern that they would have to pay VAT on my salary, which I would presume would not be payable if I was employed directly but would be payable if I was engaged via a third-party labour broker. Is this correct? Thank you.

Hi ,
 

Please refer to the following Guidance : Tax on your UK income if you live abroad  .

Thank you .

I have read the relevant documentation. As I see it, I can be employed as an employee, and on the payroll, the PAYE code is NT. I would only pay PAYE for work I do in the UK. My employer has no tax obligations; I am responsible for paying taxes in South Africa as a provisional taxpayer. Is this correct?

Hi,
That is correct.
Thank you.

A follow-up question, if I may (I have studied all relevant material, including the tax on your UK income if you live abroad already, but have additional questions) I am a Dual National (British and South African) exploring the possibility to work hybrid between the UK and South Africa for personal reasons. I currently live and work in the UK and have two income streams; Salary from UK employer and rental income from a UK property. Given that I will travel to the UK 3-4 times a year, but spend more than 183 days in South Africa, would it be possible to: - change my tax code with my employer to NT and declare/pay taxes in South Africa only - continue paying NI and pension contributions in the UK (I may return in future) Also: - Will it be possible to work hybrid without any PAYE-related implications for my employer, other than changing my tax code? - Will I pay tax on my rental income in the UK or SA? Thanks in advance and kind regards.

Hi marlene,

If you are tax resident in South Africa, you can have a NT code against your PAYE employment income.
The rental income remains liable in the UK and you would need to complete a tax return as a non resident landlord.
Thank you.

As the employer of a non-resident employee , I’ve a few questions:
1. do I need to deduct tax for my employee
2. How can I get annual p60 form?
Thanks

Hi
We need more information before we can answer this question because taxation requirements depend on a few things for example the tax residency status of the employee. 
Please contact our employers helpline on 0300 200 3200 to discuss this in more detail.
All details of contact are available at: Employers: general enquiries
Thank you

Hello,
I am a Spanish citizen with settlement status living in the UK. I am planning to return to Spain shortly and my company is considering whether it is possible to keep me employed remotely. I undertand that I would personally need to fill out the P85 form and declare my salary in Spain. However, my company would like to know if there is specific guidance for them or if so, to confirm that there are no specific actions they need to take on their part to do this.
Thank you

Hi Matias Fernandez
You can find guidance in Sections 4.5 & 4.6 at: 2024 to 2025: Employer further guide to PAYE and National Insurance contributions.
Your employer can also receive assistance through using the options at: Employers: general enquiries
Thank you.

Hi Similar question to the above. I have an employee of an Australian tax resident company who will travel to the UK to work remotely for a period not exceeding 30 workdays and will have less than 90 UK days in total. They are tax resident of Australia but hold a UK passport. They will not be regarded as UK tax resident under the Statutory Residency Test. The company does not have a corporate presence in the UK. I understand under the Double Taxation Agreement that there is an exemption from employer payroll reporting as the conditions are met. I also understand there is a 52 week exemption from National Insurance obligations for the employee and employer. My question is; does the non-UK resident employer or employee need to submit any forms to HMRC to avail of these exemptions or are they applied automatically?