UK’s review of remote working holidays sparks tax crackdown fears

The UK’s Office for Tax Simplification (OTS) has opened a review into those that work overseas remotely, in an indication the federal government could quickly start to crack down on remote working holidays.

The OTS has begun accumulating information on individuals who work for UK corporations from overseas, following a significant uptick within the numbers of folks taking “workcations” and residing as “digital nomads” since Covid-19.

The review will have a look at “emerging trends in hybrid and distance working, in the UK and across borders, and any pressures they put on existing tax rules and guidance,” the OTS mentioned.

An array of high corporations together with Meta, Ocado, and Airbnb, have adopted “work from anywhere” insurance policies following the widespread uptake of remote working in the beginning of the pandemic.

However, issues across the tax implications of such practices noticed a raft of high banks, together with Citigroup, name staff again to the UK.

Simon McMenemy, managing companion at employment regulation agency Ogletree Deakins mentioned the review “could have serious implications for employers.”

He defined that employers could be made liable to pay revenue tax and company tax in host international locations, in the event that they let their workers work from overseas.

Those working overseas are required to carry work visas for the international locations they’re in, and in flip may very well be topic to their host nation’s personal employment legal guidelines.

Companies should additionally guarantee they’re complying with UK information safety guidelines if their workers are working from outdoors the EEA.