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shubh17 wrote: ↑

Tue Nov 10, 2020 3:01 pm

Hi all,

I have tried searching online but can't get a reliable answer. Hence putting it up here.

Due to COVID-19, my work is full-time remote (work from home) and I am considering that this will be the case at my office for another 4-5 months.
Hence, I am planning to travel to my home country for few months and work remotely from there. I have Indefinite Leave to Remain.

I would like to know whether there will be any impact on my ILR status or any tax rules I need to take care of?

I am aware that to have the ILR intact, one must not leave the country for more than 2 years.

Any info/links to the right information would be valuable.

Best Regards

CULLINAN wrote: ↑

Tue Nov 10, 2020 3:17 pm

If you are a UK tax resident, but you are working overseas, a UK tax liability will arise on your foreign employment income earned while resident in the UK. You may also have to pay tax in the other location, giving rise to double taxation. Different countries have different rules so make sure you understand the taxation before you make a decision.

shubh17 wrote: ↑

Tue Nov 10, 2020 3:23 pm

CULLINAN wrote: ↑

Tue Nov 10, 2020 3:17 pm

If you are a UK tax resident, but you are working overseas, a UK tax liability will arise on your foreign employment income earned while resident in the UK. You may also have to pay tax in the other location, giving rise to double taxation. Different countries have different rules so make sure you understand the taxation before you make a decision.

Thank you. I am a UK tax resident. However, I have no plans to work overseas in any other country.
I will continue to work for my UK employer but now just from a different country for a few months (i.e. remotely).

seagul wrote: ↑

Tue Nov 10, 2020 3:09 pm

Your employer can continue to pay your taxes under paye system.

shubh17 wrote: ↑

Tue Nov 10, 2020 3:01 pm

Due to COVID-19, my work is full-time remote (work from home) and I am considering that this will be the case at my office for another 4-5 months.
Hence, I am planning to travel to my home country for few months and work remotely from there.

Work out your residence status
Whether you’re UK resident usually depends on how many days you spend in the UK in the tax year (6 April to 5 April the following year).

You’re automatically resident if either:

you spent 183 or more days in the UK in the tax year
your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year
You’re automatically non-resident if either:

you spent fewer than 16 days in the UK (or 46 days if you have not been classed as UK resident for the 3 previous tax years)
you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working

Guidance
Employees working abroad
Introduction to PAYE for employees working abroad
How you calculate and pay PAYE tax and National Insurance contributions for employees who work abroad depends on where they’re working and how long you expect them to be working there.

This guide shows you what you need to do about PAYE if your employees are working abroad.

How to calculate PAYE tax
You must continue to calculate and deduct PAYE tax from all payments made to employees who work abroad.

When your employee goes abroad, give them a letter stating:

the date they went abroad to work
their gross pay from the start of the tax year to the date they went abroad
the tax deducted from the start of the tax year to the date they went abroad

for another 4-5 months.

Zimba wrote: ↑

Tue Nov 10, 2020 4:57 pm

A reminder that this is an immigration forum. You must desist from starting unrelated to the immigration matters Tax issues are beyond the scope of this forum.