Implications for employers of overseas working

Covid-19 has made remote working the ‘new normal’ for many employees across the UK. Some employees are taking the opportunity to spend time in other jurisdictions whether for the experience or simply to return to their home nation to avoid spending another lockdown on their own. With some countries such as Barbados actively encouraging individuals to see out the pandemic in their warmer climates this trend is likely to increase. While this might seem innocent enough there are complicated matters that both employers and employees should consider.

A raft of tax and social security issues were discussed in detail in the article ‘Where do I lay my hat?’ (Taxation 9 April 2020 page 18 tinyurl.com/yyzxaxtm). As explained in that article it is important for employers to consider whether having staff working overseas gives rise to any corporate tax implications. For example...