Employees Working Abroad

Newsletter issue - November 07.

If you go to work abroad you may think your liability to UK income tax and NI will cease as soon as you leave this country. That is certainly not the case.

To escape UK income tax you must be employed in a full time contract overseas for at least a year and you need to be resident outside of the UK for a whole tax year. You must also restrict your visits to the UK during that time so you spend less than 91 days per tax year here, averaged out over a four year period following your departure from the UK. From 6 April 2008 you need to count the days of arrival and departure in the UK as part of the total of days spent in the UK, so it is important to keep accurate records.

The rules for national insurance are quite different. If you were employed in the UK before taking up an employment abroad, you remain liable to pay UK class 1 NICs for 52 weeks after you leave. But there may be a special arrangement about paying national insurance with the country you are going to, especially if this is within the EU. You may also become liable to pay social security charges (such as NICs) in the overseas country you are posted to, so it's best to get local advice on that.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk