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Q: Can I put non-resident employees on my UK company payroll for limited periods of time? If yes, how are they treated under PAYE?

Jul 15 2011

Answered by: Clive Lewis Ask a question

The treatment of UK non-residents depends upon the length of their stay in the UK. If it is not long enough to be classified as resident they are still liable to UK tax on UK earnings. UK personal allowances are only available to certain non-residents.

Sometimes double taxation agreements with other countries exempt that country's residents from UK taxation on UK earnings. There is an HMRC helpsheet on the topic here.

Taking on a new employee requires that you undertake some checks as well as getting the information to enable you to deduct UK Income Tax. You can find information on the process of taking on a new employee here.

The implications of taking on a non-resident employee can get very complicated. You would be well advised to talk to your accountant about the details.

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