Hi
This sounds like a really simple question - but I can't find the answer anywhere. I called HMRC but they hung up on me....
We have a couple of people from France working on one of our UK projects. They are employed/paid by our French partner company. They were expected to have completed their work within 183 days, but unfortunately the project has over run. They will return to France for a little while. How long do they need to stay there before they can return and continue to work without paying UK tax?
Thanks for any help or guidance.
Replies (6)
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Unfortunately it is much more complicated than simply counting 183 days.
From the information you have provided, on the basis that this was a UK project, it is highly likely that a UK tax liability (and PAYE obligation) has already been triggered. The likely 'rule of thumb' UK presence number is 60 days rather than 183 days, for UK tax implications to have been triggered.
You should obtain paid professional advice to sort the likely 'mess' out.
https://europa.eu/youreurope/citizens/work/work-abroad/posted-workers/in... might help - it says:
Income tax
If you are a posted worked for less than six months, you should not be liable to pay income tax in your country of destination.
However, there are no EU-wide laws laying down which country can tax your income during a posting. This may be set out in national laws or tax agreements between EU countries: find out more on income tax.
https://europa.eu/youreurope/citizens/work/work-abroad/posted-workers/in... might help - it says:
Income tax
If you are a posted worked for less than six months, you should not be liable to pay income tax in your country of destination.
I haven't noticed that EU guidance before but it is so incorrect that its laughable.
They'll probably have their main home in France still are unlikely to fall out of the French system so they will probably need to take advice on the double tax treaty implications