Overseas Remote employee for a UK based employer

Hi Mikel Stareyshinski,
You need to declare the income yourself.
Thank you. 

Hi, I am a UK resident (with BNO Visa from Aug 2021) and was recently hired as permanent staff by Hong Kong company and working remotely in the UK. I have foreign employment income from that Hong Kong company and paid to my HK bank account. The HK employer would engage me into HK MPF as pension contributions in Hong Kong. I have already registered on behalf of the HK employer for DCNI scheme to pay my NI monthly. Please advise and confirm if: a) The employer is not incorporated and have presence in the UK, so it should not be applicable to uk pension auto-enrolment and as since HK employer has already obliged to pay monthly contributions in Hong Kong MPF under HK MPF ordinance. b) If my foreign monthly income stays in my Hong Kong bank account, and does not remit into the UK, I do not require to pay UK tax. Thanks

Good afternoon, I trust this message finds you well. I am writing to seek guidance regarding the tax year 2022/2023. During this period, I was employed by a UK limited company and received 12 payslips, all of which were subjected to taxation at the source. On reviewing my payslips, I observed deductions for employee National Insurance (NI) and income tax (TAX), with a tax code of 1257L. It's pertinent to note that throughout the mentioned tax year, I did not qualify as a tax resident in the UK. Instead, I resided in Italy, where I fulfilled the criteria for tax residency. In light of this, I am keen to understand whether I am eligible to reclaim the taxes deducted by HMRC in the UK. Subsequently, I plan to declare my UK earnings in Italy, where I held tax residency during that period. If the possibility exists for a tax refund, I would appreciate your guidance on the procedural steps involved. My understanding is that I may need to initiate a non-residence self-assessment and submit a claim for the tax refund through the appropriate form. Your assistance in clarifying this matter and providing information on the necessary procedures would be immensely helpful. Best Regards,

Hello, I am a UK citizen and I am employed full time by a UK based employer. During next year I am planning to work abroad in Europe remotely for a few months, with the permission of my UK employer. If I spend less than 6 months outside of the UK in a tax year, am I still classed as a UK tax resident? By working remotely abroad can I continue to be paid by my UK employer into my UK bank account and pay all my UK taxes as normal? Thanks in advance for your help.

Hi , my wife and I are trying to import a car to spain from the uk and to waiver the taxes my wife has been asked to produce a p85 form acknowledgement. We have both filled these forms in before we left the UK and I received my acknowledgement in September but HMRC says that as my wife was a non tax payer for the last few years she won't receive an acknowledgement letter ? Can anyone help please

Hi ALLONOUROWN
Yes to both questions.

Hello, I am on high skilled worker visa and fully UK tax resident.I work for a company here in the UK.My job allows me to work remote without a problem and I am planning to go and visit my family in India. I will be working from India only for 15 days. Would there be any problem related to tax on UK side or India side?

Hi Matt1455,

As you were resident in Italy for 2022/23 and  if you do not need to complete a Self Assessment tax return, you will need to submit a completed P85, to confirm that you were not resident in the UK, but employed by a UK employer. You can see guidance here:

Get your Income Tax right if you're leaving the UK (P85) 

If you are required to complete a Self Assessment tax return for 2022/23, then you would need to declare that you are not resident in the UK on SA109, declare your UK employment and tax deducted on SA102 and the amount of earnings not taxable in the UK on SA101 box 12.

Thank you.

Hi Garysharp1,
You would need to contact the PAYE helpline on 0300 200 3300 or the webchat facility at Self Assessment: general enquiries.  
My colleagues might be able to write a letter confirming receipt of the P85.
Thank you.

Hi Anup788,
No, as you  will still be classed as UK tax resident.
Thank you. 

Hi, Thank you for your prompt reply re: my previous enquiry. I'd like to check with you about something else as well please. I've just been offered a second job by a different UK employer. I'm allowed to work from Bulgaria full time remotely this time. Given that I'll be working entirely from overseas, can I invoice instead of being treated as PAYE as an assistant accountant for a film production company? Many thanks,

Hi Mikel Stareyshinski,

This would depend on the actual contract and if the company are treating you as an employee to deduct tax or if they will allow you to invoice them.

Thank you.

Good day I was resident in the UK 10 years ago, have been permanently non-resident since, and do not intend to become resident in the UK in the future. I intend to contract with a UK client, where I perform work remotely, and invoice for this work through an overseas (non-UK) limited company and the UK company would allow me to invoice them. When I phoned the HMRC helpline to confirm IR35 requirements I was referred to the following paragraphs in https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm10025: "The worker must be a person who is within the UK charge to tax and/or liable for Class 1 NICs Where a worker should be subject to UK tax and NICs (based on existing domicile and residency rules), then UK domestic legislation applies to the engagement. This means the engagement could be subject to Chapter 10 (income tax) / Part 2 (NICs) rules. A client does not need to consider whether Chapter 10 / Part 2 rules apply where there is no liability to tax and NICs in the UK. The off-payroll working rules do not affect the application of tax residency rules and the same considerations apply as if the worker was engaged directly. If the worker would be chargeable to UK tax or NICs if engaged directly by the client, then the off-payroll working rules should be considered." My understanding is that since I am not a UK resident or tax resident, that UK domestic legislation does not apply to the engagement, that I would not be chargeable to UK tax or NICs if engaged directly by the client, and that the contract is therefore not within the off-payroll working rules (IR35). Please could you kindly confirm if this understanding is correct. Many thanks

Hello, I am a EU citizen currently working for the NHS as a psychological therapist. I have settled status and right to work in the UK. I am considering moving to Italy and would like to work remotely as a freelancer for UK based companies. Would I have to pay double taxes? Could I be denied the right to work if I am based in the EU? Do I need any certificate from HMRC? Thanks!

Hi William Spöhr,

If you work behind your own limited company, and all of the work is done overseas as per the Employment Status Manual, off payroll working rules do not need to be considered.

Thank you.

Hi Manuela Monacelli,
Please refer to:
https://www.gov.uk/tax-uk-income-live-abroad
Thank you. 

Hello, I have been a UK citizen from birth and I am currently employed by a UK based company. For the ta year 2022/2023 I worked 50/50 in UK and Turkey. For this current tax year 2023/2024 I will have worked full time in Turkey and will have spent less than 90 days in the UK. I plan to work in Turkey full time over the next tax year too 2024/2025. I have not informed HMRC of this yet so I am still currently paying Income TAX through PAYE. Do I just fill in my self assessment at the end of they tax year along SA109 and claim this tax back through a refund or is there something else I should be doing. Thanks

Hi, If some can shed some light on my situation please and provide a detailed response if possible if you were in a similar scenario. I arrived in the UK in 2011 and have been a UK resident since 2016. I started working for my recent employer after graduate in 2019 and continued working for them till Aug 2023. Since Jan 2021 I was working for them from Pakistan and I never came back to the UK up till now. I asked my employer to sort my taxes out as I became a non-resident in Nov 2021 but since they did not give a valid response. I continued working for them till Aug 2023 and I was continuing to pay taxes through the normal UK PAYE payroll. The salary was getting deposited in my UK account and I was remitting it to my home country through Western Union and other Remittance providers. Now I submitted a P85 form to re-evaluate my tax position in Oct 2023 and In December they have only written me a cheque for the taxes that I overpaid in 2023-2024 Tax Year. I wrote to them in detail in a cover letter and provided them with the P45, all P60's and a few latest payslips. Now I was under the assumption based off this link: https://www.gov.uk/guidance/paying-employees-working-abroad that I can claim all my taxes back since I became a non-resident. Another thing is this link which says that you will get income tax on your wages - https://www.gov.uk/tax-uk-income-live-abroad. Most of the people I have spoken to directly and indirectly have stated that I should be able to claim almost all of the tax I paid since I became a non-resident. Please if someone can provide some clarity, that would be a blessing. Many Thanks

I have a query that I hope can be answered through this forum. 1. I have been in UK since 09/2001 and have dual nationality including British. 2. I have been working in UK since 2001 and with my last UK employer since 2010. 3. During Dec 2021, I left UK permanently with my wife and son and moved to Saudi Arabia permanently. I have received residency and started working full time for an O&G Company in Saudi Arabia. 4. I have filed my tax return for 2021-22 with HMRC and also filed SA109, notifying HMRC of my non tax-residence from Dec 2021 based on Case 1 (Starting full-time work overseas) and Case 3 (Ceasing to have a home in the UK) 5. Since leaving UK, I have continued to work part time for my UK employer and have been receiving salary via payroll in my UK bank account. Income tax and NIC are being deducted as normal by my UK employer. Please note that all the work for my UK employer is being carried out of UK from Saudi Arabia. 6. I have only been to UK on holidays since Dec 2021 three times for leisure. Each time the stay was maximum of 7 days. Query I wanted to check If I am still subject to UK on my UK employment income earned from Jan 2021 to date even though I have been non- tax resident in UK since Dec 2021. If not, what is the process for claiming back the tax already being deducted through payroll?

Hi Owen Erwin,

If you are claiming a refund by the SA109, you also need to complete the claim form, HS302 that you can find here: 

Dual residency (Self Assessment helpsheet HS302)

You will also need to include a tax residence certificate to confirm you are paying tax in Turkey.

Thank you.