Foreign Employee

JodieR

A client of mine has employed an Italian man since October. The man has decided to return to Itlay but he is going to still continue to work for my client. Is there anything I need to do differently on the payroll or can it just continue as normal?

Jodie

Rachel

I think he will have to pay local taxes and either go self employed or the employer will need to contact a local payroll bureau.

Monsoon

I was trying to answer this but then got confused. If he is performing the work in Italy then my gut feeling UK tax/Ni doesn't apply. Unless the double taxation treaty kicks in. I'm not sure whether it would, or whether he just pays local tax as Rachel says.

Rachel

I have been internal Accountant to a few companies where they have had international staff and some they have contacted an external payroll bureau to process and others where the staff member has taken on the tax responsibilty for themselves. Some have also been paid fixed sterling rates and others fixed local currency. So could get a little messy and I found when we did bank transfers there were also high bank charges.

JodieR

never simple is it?! thanks for your help... I shall do some further investigations.

Rachel

Even worse when they are in China or Russia and the transfer goes missing