Tax and compliance support for internationally mobile employees
Moving employees across borders can create complex tax, payroll, social security and reporting obligations for both the employer and the employee.
At Carpenter Box, our Global Mobility team helps businesses manage the tax and compliance implications of international assignments, overseas workers and cross-border employment arrangements.
We support employers with practical advice on UK inbound and outbound assignments, payroll withholding, employee tax compliance, assignment planning and communication with employees.
We can help employers communicate clearly with employees and manage the process in a way that reduces confusion.
Inbound: employees coming to the UK
If employees are coming to work in the UK, employers may need to consider UK payroll withholding, tax residence, social security, benefits, assignment policies, expenses and reporting obligations.
We can help employers understand their UK obligations and support employees with their UK tax compliance.
This can include advice on tax returns, available reliefs, payroll arrangements and communication so employees understand their position.
Outbound: UK employees working overseas
If UK employees are working overseas, the employer and employee may have tax and payroll obligations in more than one country.
We can help review the UK position, coordinate overseas advice where needed and support assignees with UK tax return requirements.
Through GGI, we can also work with overseas advisers to support local tax and compliance obligations.
Tax equalisation and assignment calculations
International assignments can create unexpected differences in the tax an employee pays, depending on where they are working and how the assignment is structured. Tax equalisation is designed to make this fairer by ensuring the employee is broadly no better or worse off from a tax perspective than they would have been if they had remained in their home country.
Where tax equalisation forms part of an assignment agreement, employers need clear calculations to understand the employee’s hypothetical home country tax position and compare this with the actual tax due in the host location. If the host country tax is higher, the employer may need to compensate the employee. If it is lower, additional withholding or deductions may be required.
We can support employers with tax equalisation calculations, assignment planning and the tax implications of internationally mobile employees, helping both the employer and employee understand the position before, during and after the assignment.
Meet the global mobility team
Frequently asked questions
Global mobility covers the tax, payroll and compliance issues that arise when employees work across borders, either temporarily or permanently.
Yes. We can advise on UK tax, payroll, social security, reporting and employee tax return requirements for inbound assignees.
Yes. We can review the UK tax position and coordinate overseas advice where local tax input is needed.
Some employees may need to file UK tax returns depending on their residence, income, reliefs and assignment arrangements.
Shadow payroll is a payroll process used to report and withhold tax in a country where an employee is working, even if they remain paid from another country.
Yes. We can explain the tax position clearly to employees and support them with compliance obligations.
