Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Foreign Employee

JodieRJodieR Experienced MentorRegistered Posts: 1,002
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

Comments

  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    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.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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.
  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    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.
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    never simple is it?! thanks for your help... I shall do some further investigations.
  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    Even worse when they are in China or Russia and the transfer goes missing
Sign In or Register to comment.