Hong Kong Employer

Hello there, I have moved to the UK from Hong Kong and since the move, I continued to work for my HK employer remotely in the UK until now. My HK employer has no business nor established any office in the EU/UK and also not planned to have any in the future. My question is, in such situation, does my employer require to setup a business in the UK because and solely because I am working in the UK for them remotely? Will there be any permanent establishment risk as such the company may have "activities" in the UK to create a taxable presence from a corporate tax perspective? And to clarify again, I am not here to explore and look for business opportunity in the UK and solely and remotely working on Hong Kong business operations. And also, since I get paid to my HK bank account (HK employee contract), but as a tax resident, I will also need to handle the PAYE using the DCNI scheme on my own, which is something that my employer does not need to involve. Please help to clarify. Many thanks

Hi,
 

As the work is undertaken in the UK, you need to declare the income here. There is no need for your employer to set up a presence. Further guidance is at : Tax on foreign income   . Thank you.

Hi, My wife have moved to the UK from Hong Kong (HK) and since the move, I had been HK to work for her HK employer for four months. Her HK employer has no business nor established any office in the EU/UK and also not planned to have any in the future. My question is, in such situation, Her wage from my HK employer need to be taxed in the UK? How to report it in the Self assessment if yes? And also, since she got paid to her HK bank account (HK employee contract), but as a tax resident, she will also need to handle the PAYE using the DCNI scheme on her own, which is something that my employer does not need to involve. Please help to clarify. Thanks

Hi Mark Lee,
As the work is done on UK soil, yes it needs to be reported.
Please see guidance here:
Tax on foreign income
Thank you.

Hi, Thank you! How about her salary (income) from her Hong Kong (HK) employer if she goes back to Hong Kong and she works in HK for 4 months. Then, she will come back to the UK. Her salary from the HK employer need to be taxed in the UK? How to report it in the Self assessment if yes? Please help to clarify. Thanks!

Hi,

Payment for employment carried out on Hong Kong soil is only taxable there under the terms of the double taxation agreement.

If she continues to work for the same employer whilst in the UK, the UK part needs to be declared.

Thank you.

Hi there, I am currently working from home in the UK as a part-time for Hong Kong company. May I know if I only need to apply for DCNI/DPNI scheme and submit my payroll via PAYE, while no need to send a self assessment tax return? Please advise. Thank you very much.

Hi,

You do not to apply for those schemes. You are required to complete a Self Assessment Tax Return (SA100) and declare the foreign employment income on SA102.  

If you are required to pay foreign tax on this employment, then you may be able to claim a foreign tax credit for up to 100% of the foreign tax paid.

Thank you.

Hi, Last email mentioned we could report earnings from foreign employer via Self Assessment Tax Return. Do we need to pay NI on these earnings? Thanks.

Hi, I would like to refine my questions as follows. Do I need to pay NI on my foreign income from a Hong Kong employer in case 1. I work remotely for the employer in UK 2. the employer doesn't have any entity in UK 3. I have paid contributions to MPF (a compulsory pension fund in Hong Kong). The employer deducts the contributions from my salary and pays to the fund. Thank you.

Hi hellogoodmorning,
Please have a look at the guidance at National Insurance rates and categories - letter.  For further advice, please contact the NIC helpline on 0300 200 3500.
Thank you.