The following Tax guidance note provides comprehensive and up to date legal information covering:
Given the ever increasing global mobility of employees, employers could be regularly required to understand and comply with numerous legislative requirements in many jurisdictions. Tax on an employee's earnings will be a crucial issue for both employer and employee and should be fully analysed and understood prior to the commencement of any cross-border employment.
This Practice Note therefore sets out the main UK employment tax issues that may arise when:
non-UK entities employ UK-based individuals
UK entities employ non-UK individuals in the UK, and
UK entities' UK employees operate outside the UK
This Practice Note also briefly outlines tax equalisation agreements.
Other issues for consideration at the outset of any cross-border employment could include immigration issues, employee status and rights, national insurance and social security contributions, pension provision (including auto-enrolment) and other benefits (such as living and travel allowances). These items are outside the scope of this Practice Note.
This Practice Note does not consider:
the tax status of individuals coming to or leaving the UK, for which see Practice Notes: UK tax liability or Residence—issues on leaving the UK after 5 April 2013 respectively
the availability of tax relief pursuant to a double tax treaty, for which see Practice Note: What are double tax treaties?
the taxation of individuals that are employed using intermediaries, for which see Practice Notes: Onshore employment intermediaries—income tax provisions
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234