Hi all - can anyone share some thoughts on this.
UK company has an employee - who has moved overseas - perm with no intentions of moving back to the Uk. They have already had their first overseas tax return declaring them as tax resident.
When the employee moved - the employer amended the employment contract that the employee will be required to attend the uk at points during the year to complete work and this will be run as UK PAYE. (This will be under tax and NIC rates)
The employee has set up as self employed in their new country - has a tax advisor etc and will continue completing work for the UK company as self employed. They will be responsible for their own time management - use their own equipment etc
This way the UK company does not operate an overseas payroll and the sub-contractor is legitimately declaring taxes and paying national insurance in their new country as self employed.
On the face of it it all seems to be ok - uk work declared under Uk PAYE - overseas work declared under self employment - but can anyone foresee any issues with this that I am missing?
Could be a case for permanent establishment overseas possibly? Anything else