OTS to review tax implications of hybrid and distance working

The Office of Tax Simplification (OTS) is to carry out a review of the tax implications of hybrid and distance working with a particular focus on arrangements which involve employees working across borders. It will also cover remote working within the UK.

The scope of the review will cover potential tax and social security issues for employers and employees including the following:

• when the UK could tax individuals spending time working overseas and overseas employees spending time working in the UK including where more than two countries are involved;
• accommodation travel and other expenses including a review of whether the permanent workplace rules are clear for hybrid and remote working practices;
• the impact of the short-term business visitor rules overseas workday relief and PAYE withholding considerations;
• implications for pension contributions and employer share schemes;
• the creation of permanent establishments for corporate tax; and
• the allocation of taxing rights...