Working remotely – tax implications

What if you are now remotely working from abroad?

As UK lockdown took hold in the Spring, many employees were told to work remotely for the foreseeable future. With no return to the office imminent many people decided to travel abroad and work remotely from the family home in the country they were originally from, or to a 2nd home situated abroad.

As the current tax year begun just after the start of the lockdown, there is a risk to those international employees of becoming tax resident in both the UK and the country they currently reside in, or in extreme cases become non-UK tax resident for the current tax year.

There are advantages and disadvantages to becoming a non-UK tax resident but putting that aside the working out of where the employee is resident can be extremely complicated. If it is not done correctly, it could create several tax issues with HMRC, and the tax authority of the other country involved for both the employer and employee.

If you or an employee is in this situation or would like to discuss your concerns on the UK tax residence rules then please contact tax@godley.co.uk for further help.

Working from home in the Covid-19 pandemic

Many employees have been working from home due to the Covid-19 pandemic.

But what of the expenses that an employee incurs because of having to work from home as a result of Covid-19 measures?

There is a helpful guide given by HMRC as to what can be claimed by the employee if they are forced to work from home due to the Covid-19 crisis. This can be found here.

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