1 December 2020

Working from where? - Working remotely abroad

Forsters' specialist team present a webinar covering the issues arising for internationally mobile employees and their employers during the pandemic.

The pandemic has caused some of our clients to work remotely from outside their home jurisdiction, sometimes without choice and sometimes with individuals spending much longer in the UK or abroad than originally intended. Tropical locations are promoting "workations" and "remote working visas" and the appeal of setting up a home office from a villa or beach hut is clear. However, working in a different jurisdiction may have unintended consequences for both employees and employers, particularly where senior executives are involved. It is crucial to consider the implications of any location changes that have already taken place as well as planning for any future moves.

Our webinar explored the key legal obligations for those spending more or less time in the UK because of the pandemic:

  • Tax: residence, tax consequences and compliance issues in the UK and abroad.
  • Employment: contract breaches and employment rights.
  • Immigration: approvals or visas that might be required if an employee plans to work in a country for a significant period and the UK immigration consequences of spending more time abroad.

Questions to be thought about include:

  • The employee's personal tax position: does the time spent here under lockdowns 1 and 2 make someone UK tax resident and, if so, what are the tax consequences?
  • What are the corporate tax and employment law issues for the foreign employer with a UK resident employee or a UK employer with a foreign employee?
  • What is the employee’s position from an immigration perspective?
  • What is the scope for double taxation and how can it be mitigated?

Our Insights

"They have very strong commercial understanding alongside the legal aspects, and they're very impressive in engaging across a transaction and understanding what the client is trying to achieve."
Chambers UK, 2021