E&Y issues warning on ‘accidental expats’

HMRC is increasingly focusing its
attention on employees who do not qualify as ‘expats’ but who are still make
frequent short term visits to the UK, Ernst
& Young
has warned.

The firm said while international travel is an essential part of business
life, companies needed to keep track of their employees’ overseas travel or risk
heavy financial or even criminal penalties.

E&Y human capital tax director, Joe Pilley, said the kind of employee
likely to be affected is often referred to as an ‘accidental expat’, and is one
who travels internationally on business on a regular basis but is not on a
formal posting or assignment.

As a result they fall under the radar of their HR or tax department. However,
frequent short term trips over the course of a year can trigger tax payments and
a onerous form filling for both employee and their employer, the firm warned.

Failure to comply with these requirements can lead to heavy penalties.

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