We are a Bahrain Company and wish to have a representative…

Hi

It makes no difference, the employee will be living in the UK so is liable to tax in the UK, as this earned income will arise through duties that take place in the UK.

So is treated as UK resident for tax purposes, and liable to UK tax on ALL income that arises in the UK.

And as they are an employee and not self employed, they will have to arrange to set up a Direct Payment scheme so they can act as Employer by proxy (as there is no UK based office) and operate PAYE, in order to deduct their own tax and National insurance to pay over to HMRC each month

Thanks

Sam

Hi

No - I has advised you the UK tax position, and thats all I can comment on,

You will need to check the position with your own tax authorities as to arrangements that you make when paying a non resident individual.

For example here in the UK if a UK employee, goes abroad, or lives abroad, then they are permitted to apply for NO tax on the income on the basis that they are not resident in the UK. You need to establish if this applies in your country.

But this individual comes under UK tax jurisdiction for the reasons already given, and as this is a UK tax forum thats all I can advise on with expert knowledge. As the work will be carried out in the UJ and the individual is a UK resident.

Thanks

Sam

Hi

You are welcome Alison and I do hope your own tax authorities are able to help you with this, so you do not suffer tax twice as a business.

Thanks

Sam