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Posted Mon, 07 Nov 2022 10:36:44 GMT by sbc123456
Myself and my husband are applying for the new Portuguese Digital Nomad Visa (full name of visa is 'Residence Visa for Exercise of Professional Activity Provided Remotely outside of the National Territory'). The new visa allows non-EU (including UK) residents to live in Portugal for 12-months whilst retaining current employment. We have spoken to our employers and they are happy that we can do our jobs remotely in another country, they are however concerned about TAX and National Insurance implications. We are struggling to find clear answers to the following questions: - Will our UK employer be required to pay additional Tax or National Insurance if we live in Portugal on a Digital Nomad Visa for 12 months? - The UK and Portugal have a Double Taxation Agreement in place, what does this mean for us and our employer? - What is our UK employer required to do, from a Tax and NI perspective, in order to enable us to work remotely in Portugal for them? - Are there any personal Tax or NI implications that we as individuals need to consider? Thank you
Posted Thu, 10 Nov 2022 12:01:23 GMT by HMRC Admin 19

Firstly, you will need to ascertain your tax status for the year of departure and thereafter before any changes can be made. You can find guidance here:

Tax on foreign income

This will then allow you to condsider which claim you want to submit if you are exempt from UK tax.

Your employer cannot change your code without you submitting a claim to HMRC for us to issue revised instructions.

Thank you.

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