I wonder if anyone can help me please.
I have a client who was made redundant earlier in the year and now has an opportunity to work for a Croatian company who has no current presence in the UK. His role would be based in the UK, but working activities split between Uk and Croatia.
He has asked me to look into his personal tax position. If the employers are not based in the UK I presume that he will not be taxed at source in the UK but, as UK resident, this income will be taxable in the UK and he would need to complete a tax return. Would he not pay Class 1 NI? I understand that while they are out of the EU there is a double taxation agreement and therefore he would get relief for any tax paid in Croatia.
Many thanks
Suzanne Howlett
Replies (3)
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Uk domiciled?
If he is UK domiciled and UK resident, as seems likely, he will be subject to UK tax on all his income, but would not have to pay Class I NI if there is no UK employer; the Croat company should be deducting the equivalent of NI if he is being paid abroad.
His Croat employers may need legal advice on UK employment law - there may be VAT, transfer pricing and PE issues for the Croatian entity.