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Where Taxpayers and Advisers Meet

Work from home abroad rules

raedbenz
Posts: 2
Joined: Sat Nov 03, 2018 12:02 pm

Work from home abroad rules

Postby raedbenz » Sat Nov 03, 2018 12:10 pm

Hello,

I am British citizen with dual nationality. I asked my current UK employer if I could start working from home which is abroad, also currently i am renting in the UK.

I would like to know:
1- is it possible to work from home abroad without breaking any UK gov rules?
2- Does it make a difference weather my home abroad is EU or non EU country?
3 - what is the maximum days per tax year i can work abroad?
4- if i end my tenancy in the UK, hence no permanent address in the UK, and i stay in airbnb of the days in the UK, what are the implications?


Thanks
RA

RMC
Posts: 423
Joined: Wed Aug 06, 2008 3:35 pm

Re: Work from home abroad rules

Postby RMC » Sun Nov 04, 2018 8:12 pm

1 Yes
2 No
3 365 - 366
4 Depending on the tax rules in your home country (check with the local tax authority or your local accountant), you may be able to deduct from your profits the cost of business journeys to the UK incl. accommodation.

raedbenz
Posts: 2
Joined: Sat Nov 03, 2018 12:02 pm

Re: Work from home abroad rules

Postby raedbenz » Mon Nov 05, 2018 2:22 pm

Thanks for the reply.

Question 5: are there any implications with National insurance if the UK has no national insurance treaty with the other country? (Countries of concern are UK & Jordan)

RMC
Posts: 423
Joined: Wed Aug 06, 2008 3:35 pm

Re: Work from home abroad rules

Postby RMC » Wed Nov 07, 2018 11:50 pm

You can elect to pay Class 2 - but only if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for 3 years in a row and paid 3 years of contributions. This may help with your State Pension entitlement if you have fewer than full 35 years of UK NIC. See
www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions
You'll get a proportion of the new State Pension if you have between 10 and 35 qualifying years.

AdamS93
Posts: 165
Joined: Tue Sep 26, 2017 6:28 pm

Re: Work from home abroad rules

Postby AdamS93 » Thu Nov 08, 2018 10:29 am

As an employee, to keep up with national insurance contributions and entitlement to state benefits in the UK, you will have to make Class 3 NIC contributions, not Class 2 I believe. By the sounds of it, you may have to continue paying UK class 1 NIC for 52 weeks so worth checking this out.

You will have to determine your tax residency using the rules in RDR3 each year.

If you are non-resident you will only pay tax on your UK income, if you are UK resident you will pay tax on your worldwide income.

It can get quite complex, you may want to get some professional help.

etf
Posts: 510
Joined: Mon Nov 02, 2009 5:25 pm

Re: Work from home abroad rules

Postby etf » Thu Nov 08, 2018 4:52 pm

In general, wherever possible an expatriate employee should consider paying Class 2 voluntary individual contributions, rather than Class 3 NIC. They are less expensive and provide a wider benefit entitlement.

RMC
Posts: 423
Joined: Wed Aug 06, 2008 3:35 pm

Re: Work from home abroad rules

Postby RMC » Sat Nov 10, 2018 12:00 pm

Generally, residency rules in UK-Jordan DTA can overrule those in DRD3. Both available online.


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