PAYE for employees abroad

Tax and National Insurance rules vary depending on the employee’s country of residence and individual circumstances. You may need to consult an employment tax expert for advice, and your employee may want to consult a personal tax advisor to ensure they are taxed correctly.

We can’t give advice on tax rules for employees living outside of the UK.

Before you begin

HMRC provides helpful guidance for employers with employees living abroad.

For employees who are eligible for double taxation treaties, see How Double Taxation Treaties affect non-UK residents with UK income.

For employees with UK income but who aren’t UK residents, see Tax on your UK income if you live abroad.

If you need general tax help, see Get help with tax.

How to apply relevant tax and National Insurance codes

If your employee is exempt from paying tax in the UK, update their tax code to NT.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Navigate to the Taxes tab.
4. Update their Tax code.
5. Click Save settings.

If your employee is exempt from paying National Insurance in the UK, update their NI Category to X.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Update their National Insurance number.
4. Click Save changes.