Employment rights for cross-border working.

[jamesbrown]

Theoretically. This alternative is obviously a 20th century relic in the days of merchant sailors. Any company wanting to employ anyone in the UK will simply use a payroll company.

Apology accepted.

[BlasterBates]

As we’ve already determined, you don’t “have to” establish a UK payroll. A foreign company can also open a UK branch office/PE to go with their UK payroll if they want

Theoretically. This alternative is obviously a 20th century relic in the days of merchant sailors. Any company wanting to employ anyone in the UK will simply use a payroll company.

[jamesbrown]

It is described here

https://paulbeare.com/2016/03/30/a-s...rseas-company/



Sure there is also the impractical alternative of an employee being responsible for setting up a DPNI scheme and paying both PAYE Income Tax and National Insurance (NI) to HMRC under the one PAYE reference.

As we’ve already determined, you don’t “have to” establish a UK payroll. A foreign company can also open a UK branch office/PE to go with their UK payroll if they want

[NotAllThere]

also you will have to declare your income in both jurisdictions

No. You won't.

[BlasterBates]

You're conflating payroll and tax collection. The collection of taxes is merely a part of a payroll and doesn't imply anything about the amount of tax deducted (which includes zero tax deducted). In this situation, there is a foreign payroll and there is a UK PAYE/NI scheme operated by the UK employee to handle the PAYE and NICs owed in the UK. The latter is not a UK payroll, it is a scheme to operate UK PAYE and NICs. You could alternatively opt for self assessment and that is probably what a majority of people do in this situation.

It is described here

https://paulbeare.com/2016/03/30/a-s...rseas-company/

To have a UK payroll scheme for overseas companies, you need to register as an employer with HM Revenue and Customs. A payroll can be run monthly, which is usual in the UK, or weekly.

Sure there is also the impractical alternative of an employee being responsible for setting up a DPNI scheme and paying both PAYE Income Tax and National Insurance (NI) to HMRC under the one PAYE reference.

[jamesbrown]

Indeed a UK payroll registered in the UK not a payroll in a foreign country paying foreign tax.

You're conflating payroll and tax collection. The collection of taxes is merely a part of a payroll and doesn't imply anything about the amount of tax deducted (which includes zero tax deducted). In this situation, there is a foreign payroll and there is a UK PAYE/NI scheme operated by the UK employee to handle the PAYE and NICs owed in the UK. The latter is not a UK payroll, it is a scheme to operate UK PAYE and NICs. You could alternatively opt for self assessment and that is probably what a majority of people do in this situation.

[BlasterBates]

How does the foreign employer pay their employee without a payroll? I think what you meant to say is that the foreign (UK) employee will need a UK PAYE/NI scheme.

Indeed a UK payroll registered in the UK not a payroll in a foreign country paying foreign tax.

[jamesbrown]

As I said you can't work on a foreign payroll. That doesn't contradict what I said. You need to be on a UK payroll.

How does the foreign employer pay their employee without a payroll? I think what you meant to say is that the foreign (UK) employee will need a UK PAYE/NI scheme.

[BlasterBates]

Incorrect. A foreign employer that has no UK presence and no UK payroll can still have a UK employee. In that situation, PAYE and/or NIC liabilities can be handled through a PAYE Direct (DPNI) scheme:

https://www.gov.uk/hmrc-internal-man...nual/paye20100

The general rule is that taxes are paid where the work is done and taxes on worldwide income are paid where the taxpayer is resident.

As I said you can't work on a foreign payroll. That doesn't contradict what I said. You need to be on a UK payroll.

[jamesbrown]

You can't be employed in a foreign country and work in the UK on a foreign payroll. They'd have to register their business in the UK and UK laws would apply. I can see this could be a problem that someone becomes employed by a foreign company and you pay tax when you shouldn't.

Incorrect. A foreign employer that has no UK presence and no UK payroll can still have a UK employee. In that situation, PAYE and/or NIC liabilities can be handled through a PAYE Direct (DPNI) scheme:

https://www.gov.uk/hmrc-internal-man...nual/paye20100

The general rule is that taxes are paid where the work is done and taxes on worldwide income are paid where the taxpayer is resident.

[BlasterBates]

You can't be employed in a foreign country and work in the UK on a foreign payroll. They'd have to register their business in the UK and UK laws would apply. I can see this could be a problem that someone becomes employed by a foreign company and you pay tax when you shouldn't.

[AtW]

It will be a perm role and you’ll have to hand in your contractor badge and get perm banned on CUK.

[GigiBronz]

Have you asked your accountant?

It’s for perm, remote work. For contract work it does not matter, it is all the same.(hence general as well)

but let’s say they agree to a silly salary, is it still a perm role or just a contract due to circumstances?

[AtW]

Have you asked your accountant?

[GigiBronz]

Stumbled on this one recently, of course it would not matter for contract work but in this case they wanted someone permanent so I quoted a silly salary for perm and my usual contract rate.

but how does it work when you live in UK but your employer is in another country?
I would pressume no employment protections apply to you.

also you will have to declare your income in both jurisdictions and pay potentially more (depending on double taxation treaties) but still cumbersome to manage.