Impact of leaving country on Indefinite Leave to Remain

[shubh17]

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]

Yes. However, make sure you do not exceed the residence requirements in case you want to apply for Naturalisation in the future. Also, this is an immigration forum, not tax related issues forum.

[seagul]

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

No issue to your ILR provided you won't be absent for more than 2 years. Your employer can continue to pay your taxes under paye system.

[CULLINAN]

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]

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).

[CULLINAN]

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).

Best to get help here:

https://community.hmrc.gov.uk/forums/cu ... 155d975322

[seagul]

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

[CULLINAN]

Taxation is complex and depends on your individual situation. It is best to calculate as below:

“Whether there will be a change in your tax situation will depend upon your UK residency status during the 2020/21 tax year.”
“Once you come back to the UK you will then work out your residence status for the year.
If it turns out you are non-resident then you my want to complete a P85 form.
Otherwise if you are classed as resident then no action would be needed unless you needed.”

https://community.hmrc.gov.uk/forums/cu ... 155d975322

[seagul]

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

https://www.gov.uk/tax-foreign-income/residence

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

https://www.gov.uk/guidance/paying-empl ... ing-abroad

[CULLINAN]

for another 4-5 months.

We are unaware about your residence status in UK for the year 2020/2021. It is best to calculate as per the previous guidance. Your situation will change accordingly. Your residence status in UK is the key point rather than how your employer pays your tax via the paye scheme.
Best to seek tax advice on HMRC forums.

[zimba]

A reminder that this is an immigration forum. You must desist from going on a tangent on topics unrelated to the immigration matters Tax issues are beyond the scope of this forum.

[CULLINAN]

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.

Thank you.