OEB 5

Hi, will I be liable for any UK taxation if I am only Tax resident in Austria and work for an Austrian employer who then invoices a UK company for my time/services? Thanks

Hello, I'd value any feedback from HMRC on the above. Many thanks.

Hello, I currently work for a UK-based company and am planning on moving to Austria in the forthcoming calendar year. I intend to continue working for my UK employer via an Employer of Record ('EoR') arrangement wherein I will legally be employed by an Austrian-based entity which will then invoice my current employer for my services. Technically speaking, I will therefore have an employment contract with an Austrian employer (EoR entity). The EoR will then have a Master Services Agreement with my current UK-based employer. My intentions are to work from Austria 75% of the year and the UK for 25% of the year. To this end, I have been researching the UK/Austria Double Taxation Agreement (‘DTA’) as it explains who is considered a Tax resident in Article 4 of the document. It specifies that "in the case that an individual is a resident of both Contracting States, the DTA gives additional guidelines for determining tax residency", namely, if they have a permanent home in both States, "an individual will be considered a resident only of the State with which his personal and economic relations are closer - criterion of centre of vital interest". I believe I satisfy this criteria as I will have an Austrian residency and work visa, my employer will be an Austrian entity and my spouse/family is an Austrian national currently working for an Austrian employer. However, I would like to check with the HMRC as to whether this deduction on my being only Austrian tax resident is valid – and whether the UK/Austria Double Taxation Agreement supersedes the RDR3 Statutory Residence Test. Article 14 of the UK/Austria DTA regulates income from employment. To clarify, my situation will be; - I will reside in Austria for more than 183 days in any 12-month period commencing or ending in the fiscal year; - My salary is to be paid by an employer who is Austrian resident; - My salary will be borne by my employer’s permanent establishment in Austria. Can I please therefore also confirm whether the income I derive whilst living and working in the UK for 25% of the year will be liable for taxation from HMRC? Any assistance would be greatly appreciated. Many thanks.