Overseas Remote employee for a UK based employer

Hi. I an in discussion with my prospective UK employer to for me to permanently work from Abroad (India) on UK payroll. I am an Indian Tax resident and will not be visiting UK anytime. I have never worked in UK before and hence I dont have any UK address or National Insurance number. Wanted to check how can my employer run payroll without deducting tax or NI - I read somewhere that we can request for a NT tax code, however regarding National Insurance there is no clarity as I have never visited UK and will not be visiting or working out of UK for my prospective employer anytime soon. Any help in this regard is appreciated.

Hi,
 

Given the circumstances you have outlined, please complete form P85 to enable HMRC to decide if an NT tax code is appropriate. As regards the NIC position, please refer to the guidance below:  Employees working abroad  and : Get your Income Tax right if you're leaving the UK     .              Thank you.

Hello - thank you for the note. However to clarify - I have never lived in UK and don't plan to come to UK - I will be a permanent remote worker directly joining a UK company from India. I don't have a UK address or a NI number, Form P85 is asking for NI number. Also form P85 says to fill this form only if I have lived or worked in UK - in my case both are not valid as I have not lived or worked in UK. I am not an UK employee going abroad - I will be an UK employee directly hired in India and will work in India (will never be a UK resident). Is P85 still required?

Hi

2021 to 2022: Employer further guide to PAYE and National Insurance contributions

Please see 4.6.6 Coding for payroll purposes for non-resident employees who have never been resident in the UK.

You may need to provide a code number in the paying system.

Code ‘NT’ may be used where a business in the UK (or the UK branch or office of an overseas business) employs someone who’s non-resident, and the employee:

is working wholly outside the UK

has not been resident in the UK before

employee does not intend to and will not perform any duties in the UK

A full payment submission (FPS) is not required and there’s no liability for National Insurance contributions.

If the residency position of the employee or the place the duties are performed change so that the employee becomes liable to UK tax, you should immediately stop using code NT.

It appears if all criteria is met your employer can operate without HMRC instruction.

Thankyou.

Regards.

Hi, I have worked for my UK employer since October 2021 but moved to Spain in February 2021. Before February 2021, I was resident in the UK and had been since birth (1993-2021). I am now classed as tax resident in Spain and have permission to live and work here. What do I need to do to update my UK tax code? Am I liable for income tax and national insurance in the UK? Please advise.

Hi,

You can find guidance here:

Living and working abroad and offshore forms

Thank you.

Hi, I was working in the UK before with a UK work visa and I was paid into my UK bank account on UK PAYE Payroll. However after Covid outbreak, I returned to my home country and work remotely from my home country abroad. My UK work visa expired when I returned to my country during Covid pandemic. In that case, could my UK company continue to put me on PAYE Payroll, deduct my income tax and NI and pay into my UK bank account as normal? (At that time, my UK work visa expired during Covid pandemic but I was still working remotely for that company from my home country. I didn’t need a UK visa because I was not physically present and working in the UK). I look forward to your clarifications and any help is much appreciated. Kind regards. 

Hi
As you are now resident in your home country, possibly where you are domiciled, you will be taxable on your UK earnings in that country and not in the UK.
Have a look at this guidance on double taxation agreements.
Double taxation treaties: how they work
Double taxation treaties with the UK are reciprocal and can be found at:
Tax treaties
Have a look for your own country.
I cannot advise on national insurance in this forum.
Thankyou.
Regards.

Hello, I am fully UK tax resident and I work for a company here in the UK, apart from being an UK citizen I am also an EU citizen. My job allows me to work remote without a problem and I am planning to go and visit some family relatives in Brazil, I am not a Brazilian citizen just my girlfriend is. I will stay there and work from there for just 80 days and from my own understanding the Brazilian government says that I become a tax resident there if "the individual live in Brazil for at least 183 days during a tax period" not my case as I just stay a maximum of 80 days. Moreover, I don't need any kind of visa to enter the country, up to 90 days I am visa free and I am classified as a tourist. Would there be a problem on the UK side or Brazilian side? Can I do my job as normal without having to worry about taxes or anything like that ? Thanks a lot!

Hi,

HMRC cannot comment on Brazillian tax legislation.  

As you would be out of the UK for only 80 days, you would still be considered resident in the UK for tax purposes.  

You can still continue to work for your UK employer while outside the UK and your employer should continue to deduct tax and National Insurance as normal. Please note that there is no double taxation agreement with Brazil, so you could be taxed on your UK employment there as well.

Thank you.

Hi, I am a UK citizen and I am employed full time, by a UK based employer. I have recently been working remotely in Nicaragua, with permission from my employer. I am on a 90 day visa, which can be renewed by re-entry to the country and I can do this as many times as desired. The Nicaraguan embassy have confirmed that I am able to work remotely here, providing my company is UK registered and i pay all my UK taxes (I am not subject to taxes in Nicaragua, as the income is not generated here). If I spend more than 183 days outside of the UK (in Nicaragua), on a recurring 90 day visa, and spend only about 2-3 months in the UK per year, am I still classified as a UK tax resident? Is there anything I need to be aware of by working remotely, or can I continue to be paid into my UK bank account and pay all my UK taxes as normal? Does this change if i go self employed? Many thanks,

Hi,

You would not be classed as UK tax resident if out for more than 183 days.

You can find further guidance at:

RDR3 Statutory Residence Test

Please also refer to:

Tax on your UK income if you live abroad

Thank you.

Hi, I am a UK citizen employed full-time by a UK employer with no overseas presence. I will be moving to Singapore later this year and plan to continue to work for the UK company. From the financial year 2024-25 onwards, I will not be a UK tax resident and will be tax resident in Singapore. In that scenario, would I be liable to pay UK income tax on my earnings from the UK employer, or could I apply for an NT code? Thank you in advance.

Hi,

Your employer will be required to deduct tax from your earnings using PAYE.  

You could ask your employer to apply to HMRC for a direction on operating PAYE under S690, in the year you move to Singapore and for then next 2 years. If agreed, they will receive instructions to operate a 'NT' tax code.  Only your employer or their agent can apply for this.

Apply for a direction to operate PAYE on an employee's earnings

Thank you.

Hi , I am a SriLankan doctor as a part of my overseas speciality training currently I work in a UK hospital.Every month I receive salaries from Sri Lanka and UK.I pay PAYE tax for both salaries.However there is a double taxation agreement with UK and Sr Lanka thus can I reclaim PAYE tax which I paid in UK? If yes what is the process?

Hi,

Please refer to guidance here.

Tax on foreign income

Thank you.

I work for a UK registered charity. We have employees who start their employment in the UK but then are sent to work for us overseas. I send a P85 along with a covering letter to HMRC requesting an NT code. I did so for three employees during the current tax year 2022-23 and an NT code was issued for each one. As suggested, I ran two payroll records with separate payroll ID’s concurrently for each one, so during the year they each received a tax refund on the non-NT payroll record. All three employees will continue to work overseas for the whole of the new tax year 2023-24. However, I recently received from HMRC a variety of tax codes for each one and none of them were given an NT code. Since their circumstances have not changed, I can’t understand why an NT code wasn’t reissued for the 2023-24 tax year. Can anyone explain why this would happen?

Hi, I have been working for a UK-based Limited company for the past 3 years, living in London. I am an American citizen and moving back to the USA permanently. I will continue to work for this same UK company, working remotely, and will received a salary. Do I qualify for exemption of NI & tax withholding?

Hi MAF-UK,

You would need to discuss this with our Income Tax team.

Income Tax: general enquiries

Thank you.

Thanks HMRC Admin 19, but that link only takes me to a site for employees. I'm asking as the employer, because our employees are asking me to check why their tax codes have been changed from the NT tax code. Can you help me?