Benefits for Employees Working Abroad

Speak with our HR advisors:
Quick Facts

20th September 2019

  • For employers, housing can often be one of the most expensive components of the expatriate package. Housing Costs

  • Employers may pay employees a Cost of Living Allowance to compensate for any higher cost of living abroad. Cost of Living Allowance

  • Where an employee works abroad for a period of time (however short), certain travel costs are tax deductible in the UK. Travel Costs

  • In providing annual leave for employees working abroad employers can adopt the practice of the “home” or “host” country or introduce a norm for expatriates. Annual Leave

  • An employee can normally remain a member of a registered pension scheme while working abroad. Pension Schemes

  • An employee resident in the UK going to work abroad may receive their travelling costs as well as £8000 worth of qualifying removal expenses tax-free. Relocation Costs

  • There may be opportunities for tax planning when considering share-based schemes and a worker’s employment duties abroad. Employee Share Schemes

Summary

This topic examines the working requirements and associated benefits for employees working abroad, which vary widely from country to country, even within the European Union. There are no particular provisions in UK law regarding liability to tax on benefits in kind for employees working abroad.

In Practice

Liability to UK Taxation

Where the UK-based organisation has a parent company or branch in the country to which the employee is being relocated, the employee may be transferred to the overseas company or branch. In this case, any employer benefit provision must then comply with the “host” country tax and employment laws.

If the employment contract remains with the UK employer, this must indicate whether any of the tax on the employee’s salary and/or benefits provided will be borne by the employer (as will be the case where the contract specifies a guaranteed net salary) or by the employee.

Want to read more?

This content requires a Croner-i subscription.

No Subscription?

Contact us to discuss your requirements.

Call an Expert:

0800 231 5199

Talk to us on

live chat

This topic examines the working requirements and associated benefits for employees working abroad, which vary widely from country to country, even within the European Union. There are no particular provisions in UK law regarding liability to tax on benefits in kind for employees working abroad.

Quick Facts

In-depth