Employee moved overseas - IR35?

[foliedouce]

I have a small business and one of the staff members has moved to the EU permanently. Rather than set up in conuntry payroll for 1 person, I have agreed that they will switch over to a contract and we will pay them gross, with them being responsible for local taxes. They have regustered in country and have a local (to them) accountant to sort tax etc.

My local small firm of accountants don't see any issue with it as IR35 is just a UK based law, however before I push the button, I wanted to see if anyone else has any experience they can share?

Thanks

[Eric Mc]

The individual is no longer a UK Tax Resident so has no obligations under IR35 (IR35 applies to individuals who are resident in the UK).

[foliedouce]

Eric Mc said:

The individual is no longer a UK Tax Resident so has no obligations under IR35 (IR35 applies to individuals who are resident in the UK).

Thank you, appreciate the confirmation

[vaud]

https://www.litrg.org.uk/tax-guides/employment/wor...

Some wider issues to consider.

[Eric Mc]

The OP mentioned that the individual was moving overseas on a permanent basis. If that is REALLY the case then the tax situation should be relatively straightforward.

However, the individual needs to be mindful of the quite complex rules that determine whether someone really has lost their UK Tax Residence status.

[foliedouce]

Thanks both, employee (soon to be contractor) is an EU citizen by birth, lived / worked in the UK for around 7 years, now returned to the EU (different country to place of birth) to be with his wife and child in his wife's home country.

He will most likely only return to the UK once a year to attend our annual company get together.