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Company A: a software development startup. Incorporated in Finland.

Person B: An UK resident and citizen

A is looking to employ B to work entirely remotely. Because of reasons, it is not possible to have B be a contractor of any sorts, hire him through an UK company or to set up a new company in UK for the sole purpose of employing him.

Based on limited research on Finnish law this is not a problem, i.e. B just handles the taxes and employee fees himself. UK side is a complete mystery, i.e.:

  1. Is this even possible a) while UK is an EU member b) after a no-deal brexit

  2. Are there any tax mines/double taxation issues a) while UK is an EU member b) after a no-deal brexit

  3. How would the logistics of this work, i.e. how exactly does B fulfill his obligations to UK tax authorities

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  • Because B cannot contract A, the answer would be no different if A was working onsite in Finland. You would look at whether he needs a visa, have him set up Finnish tax ID and bank account and employ him like a local.
    – Greendrake
    Commented Aug 16, 2019 at 22:42
  • @Greendrake visas are not required by remote workers. The visa is required only if the work is performed while the worker is in the country issuing the visa.
    – phoog
    Commented Aug 28, 2019 at 13:19
  • @phoog Said who? I have never seen the concept of "remote workers" settled in law yet. Has it been?
    – Greendrake
    Commented Aug 28, 2019 at 13:25
  • @Greendrake, you are working at the place where your backside is. The employer would be working in the UK, they would need UK permission to work, not Finnish, they would pay income tax in the UK, not Finland.
    – gnasher729
    Commented Mar 15, 2023 at 15:19

1 Answer 1

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Got this resolved. Basically Finland has no rights to tax the income in any way and it does not matter whether the worker resides in an EU country or not. Only thing that needs to be done from the Finnish side is mark it down to income registry. From UK side you just need to jump through the hoops of PAYE scheme.

1) yes, no effect from brexit 2) no, no effect from brexit 3) Not quite sure of the details as person B is handling the matter himself, but basically they just jump through the needed hoops in PAYE

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