Global Mobility

Managing a workforce based all over the world has never been easy, but the combined impacts of COVID-19, Brexit and new legislation has made an already complex task even more challenging.

Global mobility encompasses a variety of types of Internationally Mobile Employees. The more traditional long-term transfers still exist and have been joined by short-term assignees who travel to manage projects, deliver training or set up new operations. The availability of cheaper travel has also given rise to international commuters who live and work in different countries; living in Spain but working in London for example.

Having staff working and travelling overseas presents tax compliance risks for both the employer and the employee - and more so now than ever.

The coronavirus pandemic has led to a rise in requests for remote working, as well as a realisation for many businesses that a wider talent pool overseas is now within reach. Simultaneously, however, Brexit has introduced more legalities around immigration and this, together with revisions to EU legislation, means that business travel and working abroad is not as easy as it once was. Amendments to the EU Posted Worker Directive came into force in July 2020, but these regulations have been adopted differently by each EU country.

With tax authorities increasingly cracking down on non-compliance, it is vital that both businesses and individual employees are aware of their obligations in respect of business travel legislation, employment law, social security and immigration, and the tax consequences arising.

How we can help

Proactively managing the risks around internationally mobile employees is far easier than having to rectify errors once they are made and contend with the resulting costs and potential reputational impact.

Our specialist International Tax team can ensure that you have considered all aspects of global mobility and have the necessary processes in place. Whether you are a business with an international workforce or an individual who works overseas, we can support you with strategic and practical advice:

• Determining your ‘risk barometer’ and where your potential exposures are.
• Structuring cross-border employment arrangements and work patterns in the most efficient way possible, taking into account:
  • the overall Group structure;
  • indirect tax considerations;
  • global tax reporting requirements at corporate and income tax levels;
  • social security planning opportunities;
  • domestic legislation and the impact of Double Tax Treaties;
  • home and host country payroll obligations.
• Considering whether a short-term business visitor agreement is required and assisting with the HMRC application for this.
• Developing assignment policies and rolling out supporting processes which reflect and support your organisation’s talent and business objectives.
• Tax and social security compliance, for both Employer and Employee.
• Managing the structuring of individual remuneration packages, utilising available cost saving opportunities.