An employee, who has worked remotely for a UK employer is moving to Isle of Man. Upon the move, while still doing essentially the same job, he intends to be self-employed. Would the usual employment status tests still be relevant for the employer?
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You would be best...
Consulting the IoM government website and maybe even calling them. IoM can be a tad odd.
I think
that even if he were to remain an employee, you may need to set up an IoM payroll. If he is to go self employed, it would probably under IoM gov rules and not HMRC. But then again I'm not an expert on IoM rules and have only previously run an IoM payroll and nothing more.
I think the question comes down to what are the PAYE responsibilities of a UK employer in relation to a non-resident employee (i.e. are they any different from those that apply to UK employees, which of course we are all familiar with).
I confess I don't know the answer to that question, but it seems to me that that is the one that unlocks the conundrum.
For example if the answer is that non-resident employees are outside the scope of PAYE, the individual's employment status doesn't come into it (from the UK point of view at least). I agree with the above that the possibility that the employer might have to apply IOM ITIP (as I understand they call their PAYE) should not be overlooked. On the other hand if the answer is that all employees of UK companies are within the scope of PAYE regardless of their tax residence then nothing changes.
Not resident in UK
If an employee is not resident in the UK for tax purposes and does no work in the UK, he is not subject to UK income tax or hence, to PAYE, on his earnings from his employment.
If a self-employed person is not resident in the UK and does no work in the UK, he is not subject to UK income tax on his self-employed profits.
In the circumstances, I cannot see any obligation on a UK employer to assess the employment status of a non-resident worker who does no work in the UK.
And an employee who works remotely from his employer, presumably, for this purpose is deemed to work where he is physically located when he works rather than, say, at the business premises of the employer from which he is supervised?
Isle of Man tax office.
Isle of Man tax office will be able to give you some assurance. No IR35 in the IOM, but try giving them a call on 01624 685400 and you get to speak to a tax officer who will transfer you to their relevant colleague.