UK home workers are to face greater checks around taxation as the Office of Tax Simplification launches a consultation into how companies are adapting to the rise in hybrid and remote working.
The independent adviser to the UK government will look into all aspects of remote working both in the UK and overseas, including whether UK employees working abroad become liable to income tax and social security outside the country.
The review, which will be published next spring, will investigate the tax and social security implications for companies and employees of working across borders, as well as homeworking in the UK. It will also assess the role of “digital nomad” visas now offered to attract mobile workers in more than 40 jurisdictions.
“Very few jurisdictions are aggressively policing this at the moment but, as hybrid working becomes the norm, a crackdown will come over the next few years as these workers will be seen as a lucrative additional source of tax revenue,” said Tim Stovold, head of tax at accounting firm Moore Kingston Smith.
