Outbound employees ― payroll issues

By Tolley in association with Annette Morley
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The following Employment Tax guidance note by Tolley in association with Annette Morley provides comprehensive and up to date tax information covering:

  • Outbound employees ― payroll issues
  • Introduction
  • First steps
  • Continuing UK employer ― all duties overseas
  • Continuing UK employer ― some duties in the UK
  • Long-term employment overseas ― UK employers
  • NIC differences from income tax
  • Tax equalisation employees
  • Foreign nationals leaving UK employment

Introduction

When a UK employee leaves an employment, there are certain payroll practicalities which are the same whether he is going to a new UK position or an overseas one. UK employment responsibilities and compliance with UK employment tax legislation remain the same for all UK employers whether their employees are based in the UK or overseas.

This guidance note highlights those that are the same and provides detail on those that differ. Please see the Reporting requirements on leaving the UK and Foreign employment guidance notes for more information.

Payroll actions can differ based on employee factors including:

  • will they continue to be employed by the same UK employer?
  • will they be subject to UK tax and NIC?
  • will they be subject to one of either UK tax or NIC but not the other?
First steps

UK payrolls have been subject to the Real Time Information (RTI) regime since 6 April 2013. Under these arrangements the requirement common to all individuals leaving an employment is for the employer to:

  • include the date of leaving in the Full Payment Submission (FPS)
  • provide the employee with a form P45

More on Leaving the UK: