TaxCorporate TaxE&Y issues warning on ‘accidental expats’

E&Y issues warning on 'accidental expats'

Firm says HMRC focusing on employees who do not qualify as '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.

Further reading:

What’s it like to work in… Bermuda

Permit to travel

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

3m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson