Applying Digital Nomad Scheme but still PAYE employee

Hi All, Unfortunately I have not been given clarity on the above issue: 1) Currently full time Permanent employee of a UK based company. My other half has moved abroad for his job and my company have given me permission to work from abroad as a Digital Nomad without any alterations to my contract. 2) I am applying for a Digital Nomad visa (Cyprus) in order to be able to work from Cyprus for at least the next 2 tax years. My question is, how do I notify and claim back the tax for the current and next tax year. Advice is conflicting as P85 is only if you permanently move abroad to work with a company abroad. I won't have a P45 as I am not leaving my current company. I have been told alternatively fill out a tax self-assessment but I won't be self employed. Could someone please advise on the mechanism and process to follow, once I recieve my Digital Nomad Visa? Thanks

Hi,


The P85 is still relevant as you will be out of the UK for a full tax year after the date you leave the UK. This will allow a code of NT (no tax) to be issued to your UK employer for your overseas period.


Thank you.

Hi there, I’m glad you raised this as I’m in a similar situation. My company is happy for me to work abroad as a digital nomad providing that my PAYE status does not change. Can my UK employer continue to pay me through PAYE whilst I pay tax in a different country? Would I still pay NI contributions? Would my employer be required to make any changes to the way they pay me?

Hi,
 

Yes your employer can continue to pay you through PAYE. With regards to NI, please refer to guidance at : National Insurance if you work abroad    . There should not be any need for your employer to change the way they pay you . However, you will need to apply to get your tax code changes to allow this to happen   . Thank you.

Thank you for your reply. Further to the above, if we plan to move on an approved digital nomad visa, am I right in thinking that our employers should not have to pay any business tax in the country we move to? Thanks

Hi,

The employees would need to refer to the double taxation guidance for the country they are moved to and apply for a certificate of residence: 

Tax treaties

How to apply for a certificate of residence to claim tax relief abroad

Thank you.

Hi There, I am in a similar but different situation. I am a UK citizen & Tax resdient. I work for a UK based company where I can work remotely, Where I am paid with PAYE. I am looking at using digital nomad visas in several countries in Latin america and not returning to the UK for the next few years. Will I be classed as working aborad full time? Where I am able to be in the UK for less than 91 days where I am not working for 30 of these? Or will I be classed as NOT working abroad as I am getting paid by a UK company?

Hi,

You would need to consider the rules on residence and check your ties to the UK. The ties can reduce the number of days you can stay in the UK and remain not resident.  

While you are not resident in the UK, you would not be taxable in the UK, on your UK employment or any foreign employment.

Guidance note for residence, domicile and the remittance basis: RDR1

Thank you.

Hi, I am in the process of beginning an application for a DNV for Spain, Could you please advise which forms I need to get completed (and then translated) for my specific circumstance. Employed as a PAYE remote worker (as per my contract) through a HR/Payroll service provider. I am assuming I need to complete CA9107 for the NI part but unsure about tax etc Perhaps you could advise please? Many thanks

Hi Natasha Judge,

You would need to check with your employer that this is allowed and then also the county to which you intend to travel to see what visa or other documents are required.

Thank you. 

Hi As mentioned in my initial question - I am applying for the DNV for Spain. This requires a Social Security Certifiate but I am unclear as to which one I require. The company I work for have already agreed that I can work from anywhere (so that includes Spain) as a remote worker as it is part of my contractual agreement. The question I have is which of the forms do I need to complete for the Social Security as it is unclear from the HMRC website which apply to PAYE and in particular a PAYE employee that is in effect employed via a 3rd party. Thanks

Hi,

A social security certificate may be something that can be obtained from the Contributions Agency

Phone: 0300 200 3500.  
Text Relay: 18001 0300 200 3500 (Text Relay).  
Overseas: +44 191 203 7010.  
Open Monday to Friday: 8am to 6pm. Closed on Saturdays, Sundays and Bank Holidays. 

It is not a tax certificate, so not something we could issue.  

If you are leaving the UK, you should submit a P85

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

Thank you.

I am moving to Spain under the Digital Nomad Visa and had a call with a tax advisor yesterday. My UK house is sold and this will be a permanent move. As I will be travelling back to the UK a couple of days each month for meetings, they said I will still need to pay a portion of UK tax. I was also advised that my UK employer will need to pay national insurance contributions in Spain of 30%. Can you please confirm if this is the case?

Sorry I am still confused about what I need to complete. Whilst I am moving to Spain, I am keeping my current role. This role is entirely remote and is entirely based in the UK this will not change. So can you confirm which of the information you have given is correct. Above you have said I will need to complete a P85 as a non-resident but clause 3.3 of RDR3 (copied below) suggests otherwise 3.3 Third automatic UK test You’ll be UK resident for the tax year if all the following apply: you work full-time in the UK for any period of 365 days, which falls in the tax year Which is correct?

Hi richard Snowden,

Any days that you are working in the UK, for a UK employer mean that you will be taxable on your earnings for those days. You are still entitled to personal allowances.  

You will have to pay UK National Insurance contributions on your UK earnings and your employer will see to that.  

We cannot comment on the requirements of the Spanish tax authorities. You would need to speak to your employer, the Spanish authorities or a financial adviser on that matter.

Thank you.

Hi Natasha Judge,

As you will not be in the UK for more than 183 days, you will not be considered UK tax resdient. you need to follow the steps outlined, in order, and by that, you dont get to step 3 to meet that condition.
The P85 would then allow an NT code to be issued to your UK employer and you would then declare your taxes in Spain.

Thank you.

I am moving to Bali and they have 0 taxes over there, I will be applying for a digital nomad visa. I will be working remotely for my UK employer, I want to know if me or my employer will have to pay any taxes or NI in the UK?

Hi,

This depends on what you class as your residence status.

See guidance at:

Tax on your UK income if you live abroad

Thank you.

Hi, I am looking to apply for a Digital Nomad Visa for Spain. I understand how I need to apply but would like some further clarification on the tax/NI implications for myself and my British employer. As I would become a tax resident in Spain I would need to fill out a P85, is this something I do after I have left or before I leave the UK? How seamless will the comms be between the HMRC and my employer in regards to the NT Tax code. How does the tax payments work when I am in Spain? Do I submit these myself using my NIF number, or other document when I am in Spain? In regards to the NI contributions, would myself and employer still pay these contributions? Natasha mentions filling in this form CA9107- is that right? Also, if anyone on this forum has actually completed the process, I would love to get in touch to chat further. Thanks!

Hi, I have also been told by the Spanish consulate that this visa is not yet implemented, and thus, cannot be applied for? But other sources relay different information. Can you please advise? Regards, Ivan