Overseas Remote employee for a UK based employer

A company is registered in the UK and planning to have an employee overseas. Employee will work for business development of the company outside the UK and is not UK resident or citizen. What are implications regarding NI, PAYE and tax requirements for both the company and the employee? please advise. thank you

Hi MAF-UK
We cannot advise why tax codes have changed as these are issued by personal tax, your employees will need to contact personal tax to enquire. 
Thankyou.

Hi I Ahmad
Please see the CWG2 section 4.6.6 :
2023 to 2024: Employer further guide to PAYE and National Insurance contributions
If an employee meets those criteria then there is not liability for tax or NI.
Thankyou.

Hi Christopher Esclapez,

Your employer will continue to deduct UK tax until advised otherwise.

If you will not be resident in the UK, but still working for a UK employer and will not visit the UK and work in the UK, you will need complete form P85  to advise that you are leaving the UK, but will still be employed and paid by a UK employer. You can submit the form online, using your government gateway user id and password to log in or complete the form online, print it, sign it and post it to:

HM Revenue and Customs
BX9 1AS. 

Get your Income Tax right if you're leaving the UK

If there will be periods that you will come to the UK and work for this employer in the UK, then your employer will need to seek a direction to operate PAYE, by completing form S690, which can be found here:

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

On those occasions that you are working in the UK, you are liable to be taxed on that portion of your income, in the UK.

Thank you.

Hi, I am moving to Italy in a few months with my husband who is Italian. I will be applying for Italian residency when I am there. My confusion is around work. I have a job offer for a remote job for a UK company, however I will be contracting myself to them. Do I create a UK company and do it that way as I am British? Can I then get paid into a UK bank account that we do not touch. Or is it done in Italy and contracted from there and paid into my Italian Bank account? I want to make sure I am doing the right thing. Thank you

Hi Myra,

As your employer has already applied for a S690 direction on your behalf,  your employer should provide the HMRC's S690 team with details of any change in your residence circumstances. Your employer will then be advised how to proceed.

You should also tell the tax authority of your country of residence about any change in your residence circumstances. You can see guidance here:                                               
PAYE81510 - PAYE operation: international employments: legislation

Thank you.

Hi Molly Civaai,
As you plan on being an Italian resident, your income will be declared to the Italian authorities.
Which bank the funds are paid into is up to you.
Thank you.

Hello, I'm a UK citizen employed full-time by in the UK by my employer who has no overseas presence. I will be relocating to Thailand later this year and plan to continue to work for the UK company from overseas. I have been UK tax resident all my life until now. I would remain as UK tax resident due to automatic UK test 2, for 2023/24. Do my employer just continue to operate PAYE as normal for this current tax year? Do I still need to complete a P85 form? I am also on self assessment for the last 2 tax years so does this also have an impact? For the financial year 2024-25 onwards, I would probably not be a UK tax resident but I would be working for the UK based company. Do I then need my employer to fill in a S690 form to opt to deduct PAYE at source? Thanks for your help.

Hi Chris Pool,

You would submit the P85 to have the code NT issued against your income if applicable.

You will complete the 23/24 tax return as normal but for  tax year 24/25 as a non resident you would include HS304 with your tax return. 
 
Non-residents tax relief under double taxation agreements (Self Assessment helpsheet HS304)

Thank you. 

Hi, we are a small UK company whose employees are interested in occasionally working remotely from overseas for periods of maximum 3 months in a year. Their residence would remain in the UK, and all their work would be done online. In this situation, what obligations do we have as an employer? Do we need to withhold a different amount of taxes for them than usual? Do we need to pay a special insurance on our end while they work remotely from abroad? Or do they need to pay their own health insurance for the period they are working remotely from abroad? We think a lot of companies might have a similar question, so we really appreciate your answer as we work towards making it potentially possible for our employees to have this potentially great option.

Hi Compliant Employer
Please contact National Insurance Helpline on 03002003500 and ask for International Caseworker to get detailed advice.
Thankyou.

Hi, I have my brother in law who for some familiar reason failed to apply for status before the deadline. He was in the UK in the summer of 2020 with an EU passport, but he had to leave the country. Now he is back and has recently applied for pre-settlement status from the EU Settlement Status. At the moment, it only has the confirmation on e-mail of application. In this situation, does he have the right to work until he receive confirmation and the share code? Thank you!

Hi pascal Pascal
Thankyou for your question.
However we can only answer HMRC questions.

Hello, I have lived and worked in the UK more than 7 years ago for only 2 months. I had a NI number from that time, but haven't had any taxes paid or social security in the past 7 years in the UK, only in my home country in EU. I am to be hired as oversea employee in EU State country for a UK employeer. My home office advised that I need to pay my taxes and social security with them, as my work of place in not the UK and I don't intend to live in the UK or have lived there in the past 7 years, as such I am a tax resident of my own country. Can you please confirm if this statement is correct, and if my employer can use the No Tax code for me?

Hi,
If you are an individual, you would need to speak to personal tax and national insurance regarding this, you can reach them at: Personal Tax: 0300 200 3300, and National Insurance: 0300 200 3500.
Thank you.

Hi, I am a UK resident with settled status. I am considering moving to EU and working remotely for UK company or as a contractor. Being a medical professional I will need Indemnity Insurance and I was told it would be easier to obtain this if I keep my UK residence. If I live abroad and work remotely for UK company, am I able to keep UK residence? I know that this is possible if I spend 16 days in UK, which is not an issue, however I read this is not valid if I work full time abroad, which I would be doing, however contracting for a UK company. Thank you

Hello, I am a uk citizen that has lived here since birth. Im moving abroad (to the UAE) permenantly and dont plan on coming back for the forseeable future. I work for a UK based employeer with no presence in the UAE, I plan to continue working for them completely abroad and there are no obligations or any requirements for me to return back to the UK at all. What happens to my National insurance contributions and Tax? I am aware I fill out a P85 but do I continue paying NI if i have no intention of returning.

Hi Josipa,

It depends on how long you you are actually out of the country.

Please refer to:

RDR3 Statutory Residence Test

Thank you.

Hi tbooth26,

Please refer to below for the NI query. The P85 will refund any excess tax in the year of departure.

National Insurance if you work abroad

Thank you.