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Posted Tue, 16 May 2023 14:23:19 GMT by Paloma Serrano
Hi. my husband and I are moving to Mexico my home country, his company allowed him to work remotely. He is Italian, he has permanent residence and settled status as he has lived in the UK for 10 years. he has worked all this years in the PAYE scheme. we are trying to investigate if can continue to pay taxes, insurance and pension here in the UK, as this would be helpful for my future retirement or if we decide to come back to the UK. I find many articles but they are confusing. can someone help please with some advice? thank you
Posted Tue, 23 May 2023 13:04:17 GMT by HMRC Admin 32

If you both move to Mexico, you will become liable to tax in Mexico on your income and capital gains.  

If your husband's employer allowed him to work remotely in the UK, he would only be taxable on that income up to the date he leaves the UK. This income would then become taxable in Mexico, if he continues with the same employer. You may be able to pay voluntary national insurance contributions.  

Have a look at the guidance here.

Voluntary National Insurance

You would need to contact your pension provider, to confirm if you can continue to make payments to the pension scheme.

Thank you.
Posted Tue, 23 May 2023 15:46:41 GMT by Paloma Serrano
Hi HMRC Admin 32, thank you for your reply. I know this will sound weird but it's the real situation in Mexico: he will be resident in Mexico but he doens;t have to pay taxes (at all) if he works for a foreign company. unless the company has a base in Mexico and he is contracted there (on-lucrative visa holders in Mexico don’t need to pay. You only need to pay taxes in Mexico if you are working for a Mexico-registered company. Even if they are American, Canadian, EU companies, as long as they are registered in Mexico, you need to pay taxes) His company will keep his UK contract even if he doesn;t live here. but because he doesn;t have to pay taxes in Mexico for the above explained, we are trying to find out how he can keep paying taxes here for pension, NiN, Etc. all tax advisors seem to tell me that he will have to pay taxes in Mexico but not under the above scheme so we don't know how to handle the situation here. any advice? thank you
Posted Thu, 25 May 2023 11:46:11 GMT by HMRC Admin 32

As a non UK resident, he would have to apply for the UK income to be exempt. If he wishes to remain tax resident in the UK, then he should not apply for the exemption and keep the status quo.

Tax on your UK income if you live abroad

Thank you.

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