a Client of ours has an employee who is going to live in Spain permanently. The staff member is going to work remotely so all work will be carried out in Spain - so they will remain as an employee.
has anyone encountered this before. My client has asked for some advice on this and it is my understanding that they would need to register for payroll in Spain and pay that staff member under the Spanish tax system as that is where the work is carried out and where the residency of the employee is so social security is paid in the country that the work is completed.
if that is the case they will need to employ a Spanish company to run that.
would that employee then be p45 off the uk payroll as they will have no income earned in the uk and will be non resident in the uk?