Cliff Taylor: Many companies are now restricting overseas work to a period of two or three weeks – perhaps tacked on to a holiday – because beyond that it can get messy.
The normal rules were not fully applied during Covid as tax authorities made allowances for travel bans and lockdowns, but now they are back. And many companies are now restricting overseas work to a period of two or three weeks – perhaps tacked on to a holiday – because beyond that it can get messy.Covid and the lockdowns changed so much in the world of work.
As it is awaited, the legislation has been signed into law but is not yet commenced, in other words its terms don’t legally apply yet, even though many companies are following the kinds of processes it outlines.
There is no problem extending your holiday for a few weeks and working from abroad – at least not from a tax or legal point of view. But working for a prolonged period – even, say, for four or five months – from abroad can raise complications and basing yourself overseas permanently certainly will. And outside the EU there can be further complications – for example in the US different rules apply for federal and state taxes. In short, as one tax expert put it, “it can be an administrative nightmare”.
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