Employee moving to UK

Nuttzz

Hi All,

Wonder if you guys could shed some light on this, I've an employee and his wife has been offered a very good job in London, he wants to work from home, in the UK.

How do I treat his tax? Do I just keep him on as an employee and tax him as per our payroll or do I have to register in the UK, or does he have to register in the UK?

Lots of conflicting information on the web so I'd appreciate any solid advice

prettyrestless

I would imagine that you would pay him as an employee but he would have to register in the UK and may be liable for tax there as well.

I will admit it's not my area of expertise so don't trust my advice!

ct5amr2ig1nfhp

Not ideal but he could probably set himself up as a contractor (sole trader?). Invoice you for his work.

Let him deal with the tax issues in the UK himself as the contractor.

paul71

Its actually pretty simple, you are not required to do anything.

The ball is entirely in your employees court. If he does nothing then you will receive a tax deduction cert as always from revenue and you deduct and remit taxes in accordance to that cert as you are legally required to.

If he contacts Irish revenue to inform them of his situation, they may or may not give him an exemption in written format which then covers you. In either circumstance it is then his responsibilty not yours to deal with UK revenue.

The_Bot

Seek professional advice. This is far from simple, depending on the specific circumstances as an Irish employer with a UK based employee a liability to PAYE may arise in both the UK and Ireland.

The general income tax rule is that an employees remuneration is taxable in the jurisdiction where the duties are exercised. But factors such as residence and tax treaty provisions all have a part to play.

Also, PAYE is a method of tax collection and is a different animal to the underlying liability to tax itself.

Bottom line: if you are the persons employer then you are potentially exposed to PAYE in both jurisdictions but it very much depends on the facts. Proper planning could well mean a simple solution but you need to take the advice of an experienced professional.

The question of where the employees social insurance should be paid is also relevant and is governed by eu law.

Arbiter of Good Taste

Get professional advice. Apart from his personal tax issues, if he is working overseas for your company, there's a good risk he will create a "permanent establishment" in the UK of your company. You may find that your company is then subject to UK tax on part of its profits, plus filing requirements.

It's a pain. If it was me, unless there is no one else in Ireland that can do his job, I would be saying no.