Working remotely for a UK company
Sep 28th 2020, 9:00 pm
#1
Just Joined
Thread Starter
Joined: Sep 2020
Posts: 2
Working remotely for a UK company
Hi,
I've been thinking this for a long time, doing my research, and it seems a pretty complex topic. There are lots of different ways, but most of them seems a little bit dangerous, and can be catch later by Hacienda (Even doing things legally).
So, my idea is to move to Spain for some time. I've spoken to my current employer and they might let me work remotely from Spain (They are thinking on it to decide whether is something temporary or for longer term).
If I move only during COVID, I might not overpass the half a year rule, so I don't need to make any arrangements with Hacienda. Isn't it?
If at some point, I live more than 6 months in Spain... (Probably because they let me stay forever but flying to the UK for important meetings, etc) then... What options do I have?
I've read the autonomo options and seems a little bit complicated for just 1 "client". I prefer to be on the safe route, even paying more tax, and not having a special letter from Hacienda 1 or 2 years later with a big surprise...
Another option is to work for an umbrella company, but I haven't find too much information about this route for Spain...
And the safest maybe: continue working as a normal employee for my current company, which implies some arrangements for me and my company:
britishexpats.com /forum/spain-75/work-remotely-uk-company-live-spain-926652/
But I really don't like the fact that my company needs to register in Spain as a non resident company... paying social security, opening a bank account, etc.
Are there any other legal way?
Perhaps this one? www.gov.uk /government/publications/national-insurance-employees-going-to-work-in-the-european-economic-area-ca3822
If that's a valid option, how do I pay tax in the UK/Spain? Having a NT tax code from HMRC (So I receive gross salary), and then paying tax in Spain? In regards to National Insurance, I'm supposed to keep paying NI contributions to the UK up to 2 years, and I won't need to pay NI to Spain. But with hard Brexit... I guess I have the risk to pay NI to Spain and the UK, right?
By the way, I am not British, but I've lived a fairly decent amount of my live in the UK. Just in case there is any different on tax, but I think on this case, It doesn't matter (Only to calculate where I am tax resident, if it gets complicated and both countries wants me to be tax resident - I have seen the double treaty tax document, and I think I understand most of the rules)
Any help would be pretty much appreciated!
Thanks
I've been thinking this for a long time, doing my research, and it seems a pretty complex topic. There are lots of different ways, but most of them seems a little bit dangerous, and can be catch later by Hacienda (Even doing things legally).
So, my idea is to move to Spain for some time. I've spoken to my current employer and they might let me work remotely from Spain (They are thinking on it to decide whether is something temporary or for longer term).
If I move only during COVID, I might not overpass the half a year rule, so I don't need to make any arrangements with Hacienda. Isn't it?
If at some point, I live more than 6 months in Spain... (Probably because they let me stay forever but flying to the UK for important meetings, etc) then... What options do I have?
I've read the autonomo options and seems a little bit complicated for just 1 "client". I prefer to be on the safe route, even paying more tax, and not having a special letter from Hacienda 1 or 2 years later with a big surprise...
Another option is to work for an umbrella company, but I haven't find too much information about this route for Spain...
And the safest maybe: continue working as a normal employee for my current company, which implies some arrangements for me and my company:
britishexpats.com /forum/spain-75/work-remotely-uk-company-live-spain-926652/
Hi all - we are a UK company with a Spanish employee who is looking to return home. Our plan is for him to contact HMRC before he goes and advise he will no longer be tax resident which will give him a NT tax code. He will continue to be paid UK salary but this will now be gross into his UK back account. Our company will then register as a non-resident without permanent establishment company in Spain which will give us a social security number so that we can make social security payments, we will also be registered with a non resident VAT number which we need. We are told the social security office requires a Spanish bank account for auto withdrawal of social security payments, and that can be a employee account set up for that purpose. So UK gross funds will get transferred to this new bank account, tax and social security will come off this and the remainder transferred to the employee Spanish account as pay. We then also need to revise his contract to make sure its compliant with Spanish requirements.
At least that's the plan - if anyone sees a flaw please let me know!
At least that's the plan - if anyone sees a flaw please let me know!
But I really don't like the fact that my company needs to register in Spain as a non resident company... paying social security, opening a bank account, etc.
Are there any other legal way?
Perhaps this one? www.gov.uk /government/publications/national-insurance-employees-going-to-work-in-the-european-economic-area-ca3822
If that's a valid option, how do I pay tax in the UK/Spain? Having a NT tax code from HMRC (So I receive gross salary), and then paying tax in Spain? In regards to National Insurance, I'm supposed to keep paying NI contributions to the UK up to 2 years, and I won't need to pay NI to Spain. But with hard Brexit... I guess I have the risk to pay NI to Spain and the UK, right?
By the way, I am not British, but I've lived a fairly decent amount of my live in the UK. Just in case there is any different on tax, but I think on this case, It doesn't matter (Only to calculate where I am tax resident, if it gets complicated and both countries wants me to be tax resident - I have seen the double treaty tax document, and I think I understand most of the rules)
Any help would be pretty much appreciated!
Thanks
Sep 29th 2020, 5:41 am
#2
BE Forum Addict
Joined: Aug 2005
Location: Beckenham, London borough Bromley
Posts: 1,617
Re: Working remotely for a UK company
Hola
There is an easy answer; contact the experts, Blevins Franks
Usual disclaimer; I have no interest in the company except as a satisfied user
Davexf
There is an easy answer; contact the experts, Blevins Franks
Usual disclaimer; I have no interest in the company except as a satisfied user
Davexf
Sep 29th 2020, 7:28 am
#3
BE Forum Addict
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,142
Re: Working remotely for a UK company
Or contact Pellicer and Heredia I know they have helped people in similar situations
https://expatsmagazine.org/companies-and-workers/
https://expatsmagazine.org/companies-and-workers/
