Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Hybrid workingLatest NewsPay & benefitsGlobal HRTax

Tax body launches review into hybrid and global working

by Jo Faragher 31 Aug 2022
by Jo Faragher 31 Aug 2022 Hybrid and remote working has driven many people to work from abroad, but what are the tax implications?
Shutterstock
Hybrid and remote working has driven many people to work from abroad, but what are the tax implications?
Shutterstock

The Office of Tax Simplification has launched a consultation into the tax status of remote and hybrid workers.

The independent government advisory body said the review has been driven by the “seismic change” in working from home in the UK, as well as the fact a significant number of jurisdictions abroad offer “digital nomad” visas for mobile workers.

The outcome of the consultation could have a major impact on where remote workers decide to work, as well as how companies handle employees’ requests for working abroad.

“With the drive to adapt to the changing market, and a breadth of regulations to consider, tax isn’t always the first thing on people’s minds when designing their policies,” the OTS said.

“Even in the UK, rules and guidance around employee expenses, and concepts like permanent workplace, seem designed for traditional ways of working and may begin to feel stretched.”

The OTS plans to engage with a variety of stakeholders on the issue, including employers and employees across a range of sectors and self-employed workers who spend some of their time working abroad.

Tax and hybrid working

Hybrid working: the tax implications to consider

Are ‘global employees’ the next big thing?

Working remotely from abroad: The continuing impact of Covid-19

The review will look at what working across international borders would mean for tax, social security, tax residence and an individual’s “permanent establishment” (where they reside for tax purposes).

It will also look at how accommodation, travel and other expenses might work as more employees embrace hybrid work – for example who should pay for what, and whether having permanent workplace rules makes sense.

Other considerations include the impact on pension contributions and share schemes, and whether there would be risks attached to changing corporate residence.

Lee McIntyre-Hamilton, tax specialist and partner at Keystone Law, said it was “no surprise” that the OTS is looking into the tax issues surrounding remote and hybrid working.

“While tax regimes internationally have adapted over the years to deal with secondments to and from overseas and short-term business visitors, they are generally not set-up to deal effectively with large volumes of globally remote workers. The fear of many governments is that they are losing out on revenue,” he explained.

“Many employers are unaware of the plethora of employer compliance obligations that can be triggered overseas by only one employee working remotely. For example, how many UK employers realise that they would be required to operate social security contributions in France where they employ a UK national who works from home indefinitely in that country?”

The EU has recently launched discussions with the OECD with a view to potentially updating international tax treaties in this context, he added.

“It is clear that legislators in the UK and globally are scrambling to catch-up with the implications of the new employment landscape.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The consultation closes on 25 November 2022.

Workforce planning opportunities on Personnel Today


Browse more workforce planning jobs

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Half of employers support extending paternity leave and pay
next post
NHS surgical ‘hubs’ to tackle post-Covid backlog

You may also like

Pay awards in real terms could fall for...

21 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Locum doctor loses long-running tax case

9 Apr 2025

Half of companies cut back on hiring due...

7 Apr 2025

Trump’s tariffs to hit growth and jobs, warn...

3 Apr 2025

Spring Statement: no relief on employers’ tax hikes

26 Mar 2025

HR and businesses respond to Spring Statement

26 Mar 2025

‘Light relief’ for workers as inflation drops

26 Mar 2025

Pharmacies to work to rule over higher employment...

18 Mar 2025

Boost pensions via salary sacrifice to offset NI...

17 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+