Advice needed on working abroad (tax, etc.)

StinkyMonkey

Hello

I work full time in the UK for a UK-based company. I am considering discussing with my employer the possibility of working from home after relocating to another EU country (for family reasons).

I am not sure what the implications or complications would be of such an arrangement. I assume that my employer would still pay me salary net of tax through PAYE into my UK-based bank account (and then it would be up to me to move the money abroad, withdraw it, etc.).

I am not clued up about the tax issues involved, more specifically:

- would HMRC be happy with such an arrangement?
- would I need to pay any tax in the country of residence?
- would I be able to continue paying into my UK-based personal pension (currently this is done through salary sacrifice)?
- what would happen to my cash and stocks&shares ISAs?

Many thanks for any help!

PS. I am re-posting this here as I was advised that this area of the Forum is probably more relevant.

StinkyMonkey

Sorry to bump this. Any advice will be much appreciated.

Oldernotwiser

It depends what country you move to. Several EU countries will expect you to pay tax in their system from income earned when resident in that country.

antrobus

StinkyMonkey wrote: »

I am considering discussing with my employer the possibility of working from home after relocating to another EU country (for family reasons).

Your employer may well say no. I say that because it's hard enough for most UK companies to cope with complying with UK tax legislation without worrying about also doing the same for some far flung land where the rules aren't even in English.

But then again, it depends on who you are, how important you are to them, whether they've already got a subsidiary in the country you're interested in, and a million other things that I have no idea about.

StinkyMonkey wrote: »

- would HMRC be happy with such an arrangement?

I think that HRMC are permanently miserable. I don't think anything you do will change that.

StinkyMonkey wrote: »

- would I need to pay any tax in the country of residence?

Well it would depend on the country, but I think you should assume that the answer is 'yes'.

StinkyMonkey wrote: »

- would I be able to continue paying into my UK-based personal pension (currently this is done through salary sacrifice)?

I think the answer is likely to be 'no'. I say that because, since you won't have any UK earnings, then there's nothing to get a pension on. But then that's just logic, and UK pensions law is often not very logical, so I'd ask your personal pension provider.

StinkyMonkey wrote: »

- what would happen to my cash and stocks&shares ISAs?

Well I don't think you can pay in any further contributions, but the income from the existing balances will continue to be free from UK tax. Not that it matters, since you'll be living in another EU country, and so you'll be paying tax in accordance with their rules.

StinkyMonkey

Oldernotwiser wrote: »

It depends what country you move to. Several EU countries will expect you to pay tax in their system from income earned when resident in that country.

It shall be Hungary

antrobus

StinkyMonkey wrote: »

It shall be Hungary

Personal Income Tax in Hungary


http://www.cfe-eutax.org/taxation/personal-income-tax/hungary

Mistral001

It is the tax authorities in the other EU country you will have to satisfy. It has little if anything to do with HMRC. Look at it this way only in reverse, if your next door neighbour was a Frenchman working from home for a French comapny, using all the facilities paid by the tax payer here, why should the French government get his tax?

Cook_County

You may of course constitute a PE of your employer in Hungary, require a Hungarian compliant employment contraft, have to decide if to remain in UK NIC or pay local social charges. There are huge costs and complications at the corporate level so hopefully your employer will pay for cross-border advice for you and to protect them.