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Where Taxpayers and Advisers Meet

OS Worker

amitr19
Posts: 161
Joined: Wed Aug 06, 2008 4:00 pm

OS Worker

Postby amitr19 » Thu Jan 18, 2018 3:31 pm

Hi All

Grateful for any advice.

We have an individual coming to work for us in the UK on a 6 weeks assignment. This person will be coming from the US and she has never been UK resident or employed in the UK before. Essentially this is a 6 weeks teaching job. Am I correct in assuming that since this is UK employment related we'll have to put her through the payroll. She will be liable to income tax and social security. I am not keen as the employer to go apply for a NT code if she will get an equivalent tax deduction on her US tax return for any UK taxes suffered on her income. She plans to go back to the US after her assignment.

Many thanks
AR

SteLacca
Posts: 437
Joined: Fri Aug 07, 2015 2:17 pm

Re: OS Worker

Postby SteLacca » Fri Jan 19, 2018 12:43 pm

Yes, operate PAYE as normal.

Given that it's only a six week engagement, it's probably a stretch to hope that HMRC would get around to an NT code before the engagement ends.

With regards to NI, if she has a certificate from the US confirming social security there then there may be no need to deduct NI.

amitr19
Posts: 161
Joined: Wed Aug 06, 2008 4:00 pm

Re: OS Worker

Postby amitr19 » Mon Jan 22, 2018 10:13 am

Thanks that's helpful.

HMRC's advice on their website is pretty clear that we should pay this person through payroll (https://www.gov.uk/guidance/new-employee-coming-to-work-from-abroad)

It is the US-UK DTA that got me a bit confused. As per Art 14 2(a) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/507431/usa-consolidated_-_in_force.pdf) it would appear that a person who does not spend more than 183 days in the UK would not be taxable for employment income. Not sure that my understanding of the DTA is correct. Any advice?

Thanks
AR

bd6759
Posts: 3069
Joined: Sat Feb 01, 2014 3:26 pm

Re: OS Worker

Postby bd6759 » Mon Jan 22, 2018 6:49 pm

Article 14(2) has sub-clauses a), b) AND c). All three need to be met.

However, if the employee is a teacher, have you considered article 20A? Visiting teachers for up to 2 years are exempt from UK tax. You should apply for NT.

amitr19
Posts: 161
Joined: Wed Aug 06, 2008 4:00 pm

Re: OS Worker

Postby amitr19 » Tue Jan 23, 2018 3:48 pm

Thank you. That's extremely helpful.

I did not consider Art 20A at all but seems to be exactly what I needed.

AR


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