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Paying tax and NI Abroad

By: Beth Morrisey MLIS - Updated: 11 Oct 2012 | comments*Discuss
Nanny Tax National Insurance Working

Who pays what regarding tax and national insurance contributions can be confusing for a nanny, and even more so when a nanny commences working abroad. For nannies moving abroad with a British family, the family (the nanny’s employer) is generally responsible for continuing to take care of a nanny’s tax and national insurance affairs. However, if a nanny moves abroad and takes up a local position then she is most responsible for sorting through these issues. As tax and national insurance payments can be complicated, it is best for any nanny considering leaving the UK to ask for some expert help on these matters.

Moving Abroad With A British Family

A nanny who agrees to move abroad with a British family should discuss tax and national insurance responsibilities with her employers before she leaves the UK. As a nanny may find herself in the position of working abroad for someone else who is working abroad, there may be issues regarding what kind of payments her employer must make to foreign governments and the British government. To make sure that her own tax and NI contributions are not caught up in such situations, a nanny should insist that her British employer either guarantee that they will look after her tax and NI affairs, or that their accountant will do so for her. Either way, nannies should negotiate that their British employer will pay their tax and NI contributions while they work abroad with them.

Moving Abroad And Accepting A Local Position

A nanny who moves abroad on her own and accepts a local position in a new country will need to check with that country’s government regarding her tax and insurance contributions to them. Once she understands what she owes in her country of residence she should then present this information in the UK (after having notified her local tax office that she was moving abroad) to find out if she owes anything to them after having paid her local taxes. Whether or not the nanny remains a resident of the UK for tax purposes will affect this calculation.

Finding Expert Help

Tax codes and the regulations regarding NI contributions can be confusing, so a nanny may do best to consider finding expert help regarding her finances when or if she works abroad. Information is available on tax and NI obligations while working abroad from HM Revenue & Customs as well as from Directgov.co.uk, the official UK government website. Employing an accountant may also be a good option for a nanny who prefers to have a professional advise her on her responsibilities.

Sorting through tax and NI contributions that arise from working abroad can be confusing for anyone. Nannies in particular may find themselves unsure of their obligations. When this becomes the case, discussing the situation with employers, the government of the country in which the nanny is working and the UK government should help to shed some light on the situation. Hiring expert help in the form of an account may also be an option for a nanny concerned about meeting all of her responsibilities.

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