Foreign employment

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in Finance Bill 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Introduction

To deal with practical issues immediately prior to a UK resident employee taking up an overseas employment, see the Outbound employees ― payroll issues and Pre-departure planning from an employer’s perspective guidance notes. This guidance note focuses on the position once the foreign employment is underway.

As indicated in the other guidance notes, statutory issues relating to foreign employment depend on factors including:

•
expected length of stay overseas
•
residency of the employer ― UK, EEA, or elsewhere
•
residency of the employee
•
whether it is income tax or NIC that is being considered

Both employee and employer have their individual roles to play

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