Getting paid abroad

Super_Daz

I may have the opportunity to move abroad permanently later this year. My current UK based employer has hinted that I could keep my job & work from home if I move (all I need is an internet connection).

My question is, would it be better for my employer to continue to pay me in pounds into my UK bank account & then for me to transfer it into a local bank or would it be better to get paid directly into the foreign bank (it would all be in Euros).

Also how would tax work? Would I pay UK tax rates or local ones?

I would welcome hearing from anyone with any experience or knowledge of this kind of thing.

Lith

Why would you pay UK TAX? if you are not in the country? that !!!!!! doesn't make sense...


thats like me working in japan and still pay national insurance and income tax for the UK lol..


Anyway, better to be paid in EUROS... because your working in the country that supports the euro why would you need pounds if the country doesn't accept it..

antrobus

Super_Daz wrote: »

I may have the opportunity to move abroad permanently later this year. My current UK based employer has hinted that I could keep my job & work from home if I move (all I need is an internet connection)...

So what's your decision? Are you going to move abroad 'permanently', or are you going to stay in the UK? What tax you pay will be very much dependent on the answer to that question.

marybelle01

I am not positive about this, but I work abroad for fairly long periods and my salary is paid into my UK account, and taxed and NI'd as if I were a UK employee, but as I have no intention of living abroad permanantly I don't know if this makes a difference. But I would guess that there are no free dinners and income will be taxed somewhere!

paddyrg

Income will certainly be taxed somewhere - most likely in the country where you deliver the service. It gets complex, and you need to speak with a tax advisor as you may find differences country to country (for instance when we send bands out on tour, they have different amounts of witholding tax in different countries until we can prove that they are being taxed on income by HMRC). You may find HMRC website helpful if you don't have a tax advisor -

http://www.hmrc.gov.uk/taxandu/wa_pay_tax.htm
http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm

There is no free lunch, though!

Super_Daz

The plan would be to live abroad but still do the same job I'm doing now so the service will be delivered to people in the UK. I'd still be paid by the UK head office.

Lorac05

Super_Daz wrote: »

The plan would be to live abroad but still do the same job I'm doing now so the service will be delivered to people in the UK. I'd still be paid by the UK head office.

It really depends on which country you are living in and how their tax laws work re work done in that particular country. Working abroad tremporarily for a company which is still based in the UK usually entails you being paid in the UK and taxed accordingly. You - on the other hand - are speaking about living abroad permamently thus giving up domiclie in the UK which will effect how you are paid/taxed and what you can invest in in the UK. Paying into a pension fund may well have to stop if you are no longer domicile in the UK.

nightingalesgarden

Lorac05 wrote: »

It really depends on which country you are living in and how their tax laws work re work done in that particular country. Working abroad tremporarily for a company which is still based in the UK usually entails you being paid in the UK and taxed accordingly. You - on the other hand - are speaking about living abroad permamently thus giving up domiclie in the UK which will effect how you are paid/taxed and what you can invest in in the UK. Paying into a pension fund may well have to stop if you are no longer domicile in the UK.

To add to this, your employer needs to be very careful. You are breaking residency within the UK and you are going to be living in another country - which they are aware of. So you/your employer are likely to be liable for the social contributions for that country - a big difference if you are in Sweden where it is 32%!

You need proper advice. It is not as simple as it seems. Companies have been fined large amounts for not following the correct taxation rules. No idea where you are going but the Nordics/Germany are pretty hot on this area.

hcb42

I lived in Australia for two years and got paid in uk. It was a temporary thing, temp visa not permanent

nightingalesgarden

If your employer employees people within another country then they could be seen to be liable for corporation tax within that country.