Readers’ forum: Payroll reporting obligations for an overseas worker

Working from abroad

My client runs a small but profitable magazine for computer scientists. After the Covid outbreak his staff began working from home. This has worked well and the company has decided that home working can continue even after the pandemic restrictions are lifted.

My client has just discovered that one of his employees has been working almost continuously from a holiday home in Spain during the pandemic and intends to continue to do this indefinitely. The company has been operating PAYE and National Insurance in the normal way because it was not aware that the employee was working from Spain.

Now that it knows about this can it still continue to operate PAYE and National Insurance or does it now have different reporting obligations?

Query 19 933 – Envious.

UK and Spanish tax advice is needed.

In the case in point the employer company has continued to...