Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

Employees Working Abroad

Newsletter issue - November 07.

If you go to work abroad you may think your liability to UK income tax and NI will cease as soon as you leave this country. That is certainly not the case.

To escape UK income tax you must be employed in a full time contract overseas for at least a year and you need to be resident outside of the UK for a whole tax year. You must also restrict your visits to the UK during that time so you spend less than 91 days per tax year here, averaged out over a four year period following your departure from the UK. From 6 April 2008 you need to count the days of arrival and departure in the UK as part of the total of days spent in the UK, so it is important to keep accurate records.

The rules for national insurance are quite different. If you were employed in the UK before taking up an employment abroad, you remain liable to pay UK class 1 NICs for 52 weeks after you leave. But there may be a special arrangement about paying national insurance with the country you are going to, especially if this is within the EU. You may also become liable to pay social security charges (such as NICs) in the overseas country you are posted to, so it's best to get local advice on that.

  • Auto enrolment icon

    Auto Enrolment

    Workplace pensions rules are changing.
    Be prepared for auto enrolment, see how we
    can help and read up on our guidance notes.


  • Cloud accounting icon

    Cloud Accounting

    With our online bookkeeping packages, our support
    services are only a click away.
    Discover cloud accountancy solutions to bring your finances up to date.

  • Pay less tax icon

    Pay Less Tax

    Our experienced tax advisors can help you
    make the most of your options to reduce
    your tax bills.


  • Make more profit icon

    Make More Profit

    From business plans to management accounts,
    our business services will ensure you are in
    control of your business finances.


  • Source finance icon

    Source Finance

    Our experienced partners can guide you
    in getting the finance you need to make
    your business grow. Read our guides or
    contact us for a free consultation.

  • Outsource your payroll icon

    Outsource Your Payroll

    Let us handle payroll compliance for your
    business. We can deal with HMRC on your
    behalf, and take the stress out of RTI.