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Cross-border remote workers: PAYE issues

Sarah Hewson and Steve Wade (EY) examine PAYE obligations and how any UK employment tax risks can be mitigated.

The covid-19 pandemic has hugely impacted the way people work accelerating a shift to flexible ways of working across the global workforce. Large numbers of employees are now undertaking most if not all of their employment duties remotely with a number of employees working in a different jurisdiction presenting multiple challenges to employers including understanding where employees are/have been working what tax and/or social security withholding risks may have arisen in each jurisdiction and how any such risks can be mitigated. This article focuses on UK employer PAYE obligations and is intended to give an overview of the key points to consider albeit employers should consider the impact of the precise facts and circumstances of each case.

UK employees overseas

A number of UK...

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