Knowledge Centre

Employing Expat Workers

How does it work?

Global migration and trade has increased the demand for out of country recruiting or movement of UK based staff to other countries to perform their duties.

Some considerations:

  • Is the employee a UK national moving to another country to work.
  • How long will the employee be living and working in another country.
  • Is the employee a resident of another country, lives in another country but paid via the UK payroll.
  • Is the employee a resident of another country, lives not in their home country (or the UK) but paid via the UK payroll.
  • Is the employee a seconded employee into the UK for a period of their recruitment.
  • Time spent in different countries.

Each employee’s Tax, NI and pension treatment will differ depending on their own unique living and traveling arrangements.

Seconded employees

Seconded employees:

  • work wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer
  • are assigned to work wholly or partly in the UK at a recognised branch of their own employer’s business
  • are included by an employer within a dedicated expatriate scheme or within an expatriate modified PAYE scheme

You’re responsible for PAYE tax on seconded employees earnings, however the rules for what tax code to use and what to include in their payroll records are different.

GOV.UK have produced guides that will assist: