In reply to Robey:
I spoke to an employment lawyer specialising in hiring internationally recently, who advised me that whilst IR35 wouldn't be a concern, many countries have laws prohibiting misclassification of workers that would apply, especially if that person is found to be a disguised employee so the employer can avoid dealing with the tax implications in that country, potential ramifications being financial penalties. If they were pursuing this option, it would be an idea to at least have a fairly lengthy break between being an employee and returning as a contractor, and for that contractor to take some other jobs on the side etc.In reply to Steve Bridger:
Hi Steve
It has come up as a flexible working request, initially for a 2 year period in Portugal to accompany a spouse.
We already have an employee (UK national) who has been working in Bali for 9 months, an arrangement which predates my time here, but does have some basis in business need as we have projects in SE Asia.
In reply to Kathryn Macrae:
Yes they do.In reply to Kathryn Macrae:
what should I be including in an agreement for the employee to sign?
In reply to Robey:
Kathryn the directors may like to bear in mind corporate tax liabilities and cost of the advice on that as it's not just the employee tax situation that you need to worry about. I have found explaining that we will incur a five figure sum for some basic tax advice before even starting anything tends to help their decision making lean more towards "no".In reply to Helen:
There is also the risk of being found in breach of Portuguese Employment law as if the person is resident in Portugal, you would need to ensure that you are complying with their employment laws. That can often be a bigger risk than the tax issuesVisit the main CIPD website
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