Client working overseas

Client working overseas

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Hi,

We have a client who works overseas for an overseas company in various overseas jurisdictions (most of which have a double taxation agreement with the UK). His employer pays local taxation (income tax) although there is nothing at all 'employed' about his contract.  In the UK it seems that he is being forced to pay PAYE rather than maybe working through a limited company or potentially as a self employed individual purely based on the Chinese employer's decision to pay income tax in Mauritius or Nigeria rather than any real employee/employer relationship.

With this in mind - can the 'income' tax paid in the overseas jurisdiction by an employer based in another jurisdiction be offset against, for example, corporation tax rather than income tax in the UK? Alternatively could the income tax paid overseas be offset against UK income tax on income paid by a Limited Company to an employee/director in the UK?

Thanks

KFK.

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By thehaggis
11th Oct 2014 10:28

Clarify?

If he works overseas for an overseas employer, who is operating PAYE and on what?

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By Portia Nina Levin
11th Oct 2014 11:07

No

You can only get double tax relief against the same source of income received in the same capacity. So if you want the double tax relief, you have to put up with the position imposed or find an alternative engagement.

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