PAYE and NI on emigrant employee

PAYE and NI on emigrant employee

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A UK company employs an individual (Brazilian national and domicile) who has until now been resident, ordinarily resident and working in the UK, and whose salary has been subject to PAYE and Class 1 NIC at source as normal.

The employee is now moving permanently to Brazil. He will continue to be employed by the UK company but his duties will be conducted wholly overseas, for which he will be working full time for an indefinite period but certainly for a few years.

The question arise what are the continuing PAYE/NI liabilities and reporting obligations of the UK employer following his move to Brazil, and whether those answers differ depending on whether viewing the tax year 2015-16 or the later part of the 2014-15 tax year while abroad.

Points of possible interest are: The employee is expected to be non-UK resident for 2015-16, satisfying both the first and third automatic overseas test. He is UK resident in 2014-15 but for the application of split year treatment, for which he is expected to qualify.

I see a reference to a possible ongoing NI liability for 52 weeks. Would that apply here?

Thanks

With kind regards

Clint Westwood

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