Continueing to work remotely for UK employer from South Africa

I have dual citizenship form the UK and South Africa (SA). I am currently employed by a UK employer for the last 4.5 years and residing in the UK. I am registered with HMRC, fully compliant and paying UK tax, contributing to UK pensions (employer and SIPP) and make NI contributions like all UK employees. I am exploring the option to potentiually move back to SA (for family reasons) and to continue to work remotely for my UK employer and make return visits to the UK about 2-3 times a year for about 2-3 weeks at a time. I am aware there is a double tax agreement (DTA) between the UK and SA, but I am unsure what the tax implications are for living in SA for more than 183 days a year whilst working for my UK employer. I am really keen to pay UK taxes and NI and therefore continue with my UK pension building process (incl state pension) whilst living in SA, but I am unsure if this is possible and how much tax liability will I have in SA under the DTA. I earn about £96000 pa after my workplace pension contributions are deducted. I recognise every case is unique, but was just starting to do some research on this idea and noted this forum. Many thanks.

Hi,

If you leave the UK, to return to South Africa, but continue to be employed by a UK based employer, while resident outside of the UK, you will need to submit an online P85 form.

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

This will let you notify HMRC that you are leaving the UK and ensure that your employer can operate the correct tax code. As you will be resident in South Africa, you will be liable to pay tax on your UK employment in South Africa, as part of the double taxation treaty under article 14.  

UK/South Africa Double Taxation Convention signed 4 July 2002

If you return to the UK and undertake work for this employer while in the UK, that proportion of your earnings will be taxable in the UK. You will also need to review the guidance on tax residency and take the residency tests.

RDR3 Statutory Residence Test

You may find that your visits to the UK in a tax year, when added together, mean that you are tax resident in the UK and your UK employment income will be taxable in the UK.

Thank you.

Many thanks for this information. Under this working scenario, would it be possible to continue to contribute to NI to continue to build by UK state pension?

Hi,

You can see guidance here:

Apply to pay voluntary National Insurance contributions when abroad (CF83)

Thank you.

 

Many thanks for the above info. A few questions: 1. I am unsure what the above bit "If you return to the UK and undertake work for this employer while in the UK, that proportion of your earnings will be taxable in the UK. You will also need to review the guidance on tax residency and take the residency tests." means with regards to the proportion of my earnings will be taxed in UK. Is the residency tests not binary? Meaning one is either a resident in the UK or in South Africa in a given tax year? I cannot see anything on proportionality in the rules. Can you perhaps explain this to me a bit more? Many thanks 2. Does HMRC offer a video meeting service perhaps where one can book a meeting with a HMRC consultant to discuss one's situation and get verbal advice? One these issues discussed in my post? Many thanks indeed.

Hi,

1. See additional guidance at
   Tax on your UK income if you live abroad
2. No. You would need to telephone or use webchat to go through your personal circumstances

Thank you.