Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 19 Jul 2022 10:59:14 GMT by Rom11
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
Posted Tue, 19 Jul 2022 14:06:27 GMT by HMRC Admin 26
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.
Posted Tue, 26 Jul 2022 16:24:43 GMT by Cm1231
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?
Posted Wed, 27 Jul 2022 08:21:20 GMT by HMRC Admin 17

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.
Posted Fri, 30 Sep 2022 10:02:46 GMT by Cm1231
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
Posted Wed, 05 Oct 2022 08:11:07 GMT by HMRC Admin 19
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.

You must be signed in to post in this forum.