Working remotely in UK from IOM
Working remotely in UK from IOM
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Discussion

Darth Paul

Original Poster:

1,654 posts

247 months

Saturday 11th June 2022
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I've always liked the idea of living on the Isle of Man and after another TT trip last week and work now almost completely remote, there doesn't seem to be a better time.
The taxation situation of the IOM doesn't benefit me greatly, but how would it work in general if my income is still from a UK based company? I can see something about Double Tax Relief but not sure how it could/would work?
Also, how would it affect my employer with regards to PAYE, NI Contributions, etc? Would they even accept it for a worker drone like me! Or have they got no real say in where I reside as long as I do my work and appear at the office if & when requested?

mike9009

10,817 posts

272 months

Sunday 12th June 2022
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Have you visited when the TT is not on? Mid November perhaps?

I live on the Isle of Wight which is glorious at the moment. But a drizzerly morning in mid-Jan is not so attractive. Still, I would not move though......

Carbon Sasquatch

5,221 posts

93 months

Sunday 12th June 2022
quotequote all
It gets very complicated very quickly.

Short answer is that your employer can require you to work from the UK, even if that is at home. There are a whole load of issues that they may or may not care about. Smaller employers tend to be more relaxed / unaware, larger employers way more likely to say no.

There's personal tax, corporate tax, employment law issues, right to work issues etc etc.

You need the host country to allow you to work there - you may need residency or a work permit.
Income tax may be payable in the host country - a dual taxation agreement will ensure you're not taxed twice, but there is admin
National Insurance / social security varies
Corporate tax can be the killer - depends on the circumstances, but this is where most companies say no. The host tax authority may deem a permanent establishment and come after a share of the company profits.
Employment law - you may inherit the local rights - so they may not be able to make you redundant as easily / cheaply as they can in the UK etc.

Darth Paul

Original Poster:

1,654 posts

247 months

Sunday 12th June 2022
quotequote all
Thanks for the replies.
I’m no sun worshipper, so typical drizzly British weather I’m quite happy with. The colder the better to be honest for me! It’s the community spirit of the iom that drew me in, there’s a real sense of pride in the island by everyone that has seemingly vanished from vast swathes of the mainland.
Sounds like it may well be a non starter for me then. A number in large UK multi national with German owners probably isn’t going to get any preferential treatment. I have seen jobs going on the island in my field in the past, so may be that will be the best option. Have to keep an eye on those recruitment boards!

trashbat

6,298 posts

182 months

Sunday 12th June 2022
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Not an expert on this but in my anecdotal experience, big companies may allow you to work from some other nation for a fixed period of time (e.g. 30 days in a row, max of 90 a year), provided you have legal right to work there. There are complex tax and legislative consequences.

To work from somewhere permanently it tends to be that the company needs to have an office in said country.

LukeyP_

428 posts

83 months

Sunday 12th June 2022
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Wouldn't be allowed I'm afraid due to different employment laws and tax rules. I work for a big worldwide company (we are all remote based) and few people left recently as they moved back to there home country where we didn't have an office and therefore, legally could not employ them.

Carbon Sasquatch

5,221 posts

93 months

Monday 13th June 2022
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LukeyP_ said:
Wouldn't be allowed I'm afraid due to different employment laws and tax rules. I work for a big worldwide company (we are all remote based) and few people left recently as they moved back to there home country where we didn't have an office and therefore, legally could not employ them.
The last bit isn't quite true - there generally aren't laws preventing it - just cost and risk - and most companies are cost & risk averse. Also, each country comes with different rules, costs & risks, so for most larger companies it becomes easier to just say no to everything.

Darth Paul

Original Poster:

1,654 posts

247 months

Monday 13th June 2022
quotequote all
would it be the same situation if you were a contractor? Down to whether the company is willing to deal with any potential issues arising from employing someone, even on a temporary contract, located outside of their location?

Carbon Sasquatch

5,221 posts

93 months

Monday 13th June 2022
quotequote all
I'd expect similar but different - there would still be no universal answer. Some companies would likely be fine with it, for others it would be a straight no.

It also depends on whether they ask where the actual work is being done - which they might well not, particularly if you are billing through a UK company. It would also depend on the type of work being done - any sort of security clearance required and you're probably screwed. Similarly, but to a lesser degree, GDPR means companies care about where their data is being exported to.

To be working from wherever you want, you need to become a you tube influencer or an independent writer or something like that smile