One important tax issue that multinational businesses need to be aware of is if they wish to send an employee to work abroad. There are many complicated tax rules regarding sending employees abroad such as obtaining UK tax relief. If a business was to send an employee to work abroad and if this was to last for over a year, then the employee may be able to obtain a full UK tax relief on their earnings. You will need to make sure that you contact both HMRC and the USA tax authorities to make sure you make the necessary arrangements.
There are also many different rules regarding an employee’s National Insurance contributions (NICs) when an employee goes to work abroad. The UK and USA have established an agreement regarding employees NICs. Generally an employee will have to pay it in the country they are going to work in. If an employee is only working abroad for a limited amount of time then the rules change. These rules mean that the employee will continue to pay NICs in the UK. There is however a maximum amount of time an employee can be sent abroad and continue to pay their NICs to the UK. The set maximum time varies from country to country and will depend on the individual agreement the UK has with the other nation.
The team at Douglas Wemyss Solicitors is experienced in dealing with cross border tax issues and we are here to take you through the process step by step. We are keen to talk to you on a no obligation free consultation basis. Please get in contact with our senior partner Sameer Karim on 0116 2999199 or you can email him at: sameer.karim@