Expatriate Taxes

SUPPORTING YOUR EMPLOYEES ABROAD

Of course you want the expat employees you send abroad to be properly rewarded, and not be hit by full exposure to income tax both from the UK and the country (or countries) in which they’re working.  

Similarly, during their period abroad they will want reassurance about tax on their income from investments, if they sell their UK assets (such as property) and how they might be affected by Inheritance Tax and Capital Gains Tax. Assuming they return to the UK whilst still working for you, they will need corresponding advice to mitigate tax impact. 

Our globally coordinated advice will ensure your expat employees don’t have to worry about their tax and can remain reassured, motivated and fully engaged on your projects. 

CLAIMING RELIEFS

If your expat employees move countries whilst working abroad, especially if it’s part way through a tax year, then there are extra complications. There may be tax treaties between the jurisdictions involved, so it’s important to utilise these to prevent employees paying simultaneously to multiple tax regimes. It’s also critical that their tax correctly reflects what they’ve earned and is paid on time in order to prevent penalties.  

Your employees could enjoy worthwhile benefits from temporary workplace relief and relocation allowances, so these need to be included in your processes. If you have employees domiciled abroad who you temporarily transfer to the UK, they may be eligible for overseas workday relief if they’re still carrying out their overseas duties.  

TAX COMPLIANCE & MITIGATION

Forewarned is forearmed. If you tell us where and for how long you’ll be sending an employee, we can work out the cross-border tax implications for them as an individual and for your business, before they depart. At the end of their assignment, we’ll confirm how much they’ll owe (in each jurisdiction) and prepare the appropriate tax returns. 

Our services include not only compliance around the following areas, but also pertinent advice on: 

• Tax policy preparation for expatriate employee populations 
• Employee compliance management 
• Implementation of expatriate tax processes and procedures 
• Global tax compliance and advisory 
• Entry and exit interview 
• Expat tax return preparation 
• Hypothetical tax calculations and reconciliations 
• Modified PAYE/NIC 
• Tax equalisation calculations 

JOURNEYS TAKEN TOGETHER

While your employees travel the world, you’ll be on your own business journey. We work with globally mobile companies at every stage of their lifecycle, from start-up and fast-growing businesses to large multinationals. Our services are tailored with that in mind, so they are always relevant to your short-term objectives and long-term plans. 

The same applies to how we support your employees. From preparing for their assignment abroad to eventual repatriation to the UK or for bringing your foreign national employees into the UK, our tax planning and compliance advice will always be in sync with current needs and anticipating future outcomes.