Does My Employer Have To Deduct Tax In The UK?

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Does My Employer Have To Deduct Tax In The UK?

I may be going to work offshore in Brunei on a 4 on 4 off rota. The money is tax free from Brunei but I have concerns as I will be going back to the UK in my time off. Is my employer obliged to pay the British tax?

Jason Porter of Blevins Franks advises that the tax treaty does discuss less than, or more than, 6 months in the UK, and which country has the taxing rights. But, there is also a UK rule around spending more than three months a year in the UK on average, and it is likely he will fall foul of this, and therefore be classed as UK tax resident. There is obviously a huge difference between rates of tax in the UK and Brunei, and it is in his interest to get it right. Otherwise, he may make insufficient provisions for his UK liabilities (if his employer does not do it for him).

He will need to explain to his new employer what his plans are, re returning to the UK for his weeks off, and that he will be present in the UK for 3-6 months a year. They will then hopefully deduct the correct taxes and pay it over to the UK tax authorities on his behalf. If not, they should tell him what they will be doing, so he can plan to put aside the UK tax and NIC he will owe.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.