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Posted Tue, 04 Jun 2024 04:25:27 GMT by Matthew Orzel
I am UK, my limited company is currently UK. My family is considering moving to RO now that I can "work from anywhere" I have been exploring working from Romania, but I don't fully understand the UK "statutory residence test" (SRT) and how it works. I am quite concerned that I'll end up being tax resident in both (which I believe is not meant to happen). I have found a "working overseas" option in the SRT, but it seems unclear how this is defined. Effectively, I plan on returning home to see family - there are also UK client visits for about a day's work a year (currently). The rest I plan on being in Romania / travelling. 1 - Can I "work overseas" in Romania for a UK company? If so, what are the rules / declarations please? Am I able to visit family / attend the one client meeting? I've seen P85 mentioned and PAYE "live" accounts on other threads. 2 - Does it matter if the company is my own? It is currently a UK company with UK clients (the work being done will primarily be done from Romania). 3 - on a personal level (not corporation tax) if I am living and working in RO, I am expecting to pay RO income tax. Could I ask what UK income tax / NI I'd be liable for in this situation? 4 - I've not actually worked out how to pay myself (at all) UK (or RO) yet. My understanding is that there's either PAYE or "director salaries". Does this make any real difference / have any effect in this situation? I don't believe I have PAYE in my company yet (I've not paid myself). Do I need to get it? Thanks, Matt
Posted Thu, 06 Jun 2024 09:53:18 GMT by HMRC Admin 25
Hi Matthew Orzel,
You can work overseas for a UK employer.
The statutory residence test is to determine whether you would be taxable on the UK employment income in the UK.
You would complete the form P85 to report that you are leaving the UK.
You can work for any UK employer.
They will add you to their payroll and notify HMRC.
 If the statutory residence test show that you are not UK tax resident, then you will only be taxable on the UK employment income in Romania.
 How you get paid is up to the employer, who should continue to deduct national insurance from your employment income.
Thank you. 

 

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