The successful management of an internationally-mobile workforce requires an understanding of the income tax and social security rules in multiple jurisdictions, as well as how these fit together to prevent double taxation and social security charges.
The decisions employers face in relation to their employees’ cross-border working arrangements have profound cost, administrative and reporting implications for the business, as well as tax and social security implications for the employees themselves.
Our experienced team of global mobility specialists advises across a broad range of scenarios: from assisting employers who are seeking to expand into or out of the UK for the first time, to helping businesses meet international withholding and reporting obligations. An important part of our service is to support assignees with their personal tax affairs under expatriate programmes, ensuring they can focus on their roles rather than their tax affairs.
We work closely with our overseas counterparts across the Nexia International network to ensure that employers are supported with all their international requirements in relation to cross-border workers, that policies and processes are robust and that tax planning opportunities are identified to save costs.
How we help
Structuring an appropriate assignment compensation package
We work with you to design a fair and tax-efficient assignment package and mobility policy to support employees accepting an overseas posting. If assignees are being asked to relocate from a higher or lower tax jurisdiction, we can assist you in designing a ‘tax equalisation’ strategy that will make an employee’s decision to relocate a tax-neutral one. We also review and advise on the social security implications where assignees are working across multiple jurisdictions.
Assisting you with implementing and administering appropriate payroll arrangements
We and our Nexia partners advise you on optimising your payroll arrangements for cross-border individuals and assist with administering any modified, shadow or local payrolls.
Payroll arrangements may vary according to a number of factors. For example:
it is best practice to report UK inbound tax-equalised expatriates on a separate ‘Appendix 6 modified payroll’;
it may be possible to prevent double taxation on payroll earnings by applying for arrangements that restrict payroll tax withholding to earnings that relate to UK workdays or by enabling employers to claim foreign tax credits via payroll;
it may be necessary to operate concurrent payrolls to report employees’ earnings on both home and host country payrolls;
depending on the characteristics of outbound assignments, the payroll structure and what should be reported in the UK may differ; and
social security may need to be operated on remuneration delivered in both home and host country locations.
Assisting you with meeting your other employer reporting obligations
We support you with your reporting obligations aside from payroll reporting; for example, in respect of business visitors from overseas or employment-related securities provided to cross-border workers.
Supporting your UK inbound and outbound assignees
We and our Nexia partners assist with your assignees’ tax return preparation. We can also educate assignees on managing their tax compliance obligations, including how to take advantage of local tax reliefs. This can be done by carrying out tax consultation briefings and by providing your employees with reference documents.