Employees working abroad

How to use the service

You must continue to calculate and deduct PAYE Income Tax from all payments made to employees who work abroad. When your employee goes abroad, give them a letter stating: the date they went abroad to work their gross pay from the start of the tax year to the date they went abroad the tax deducted from the start of the tax year to the date they went abroad Employees who spend most of their time abroad over a period of a year or more may be able to obtain full UK tax relief on their earnings. Ask your employee to complete form P85 and send it to HMRC who will confirm the tax code to use. If your employee is on an overseas contract, it’s possible that the tax authorities in the overseas country will want to make tax deductions from your employee’s income. Contact the Employer Helpline and the overseas authority to make sure you’re clear about your obligations in both countries. You must tell the Employer Helpline if one of your employees is going to be working in an offshore area. Usually, you’ll continue to operate PAYE Income Tax as usual for these employees - but there are exceptions.