Global mobility

Understanding global mobility

In an increasingly interconnected world, businesses are expanding their reach across borders, and with that comes the growing need for effective global mobility strategies. Global mobility refers to the movement of employees between different countries to support business objectives, whether it’s through international assignments, relocations, or remote work. For companies with employees operating internationally, having a robust global mobility strategy is essential for navigating the complexities of cross-border tax compliance, legal requirements, and human resources management.

As businesses move forward with global expansion, understanding the implications of global mobility on tax obligations, social security, immigration, and other regulatory matters is vital. A strategic approach helps mitigate risks and optimise the deployment of talent globally.

Comprehensive Tax Compliance Strategies

Managing international employee taxes is a critical component of global mobility, and implementing effective tax compliance strategies is key to ensuring a seamless and compliant experience for both the employee and employer. From tax filings to social security coordination, businesses must adopt strategies that address the nuances of various international tax laws.

Our tax advisory services help companies design and implement tax-efficient policies that reduce risk while ensuring compliance with all relevant tax regulations across jurisdictions. The key components of an effective global tax compliance strategy include:

• Tax Residency Planning: Ensuring proper classification of employees’ tax residency status to minimise double taxation.
• Cross-Border Tax Withholding: Managing tax withholding obligations for international employees to avoid compliance issues.
• Social Security Coordination: Navigating complex social security laws and ensuring that employees don’t end up paying into multiple systems.
• Immigration and Work Visas: Integrating immigration compliance with tax planning to ensure that employees can work legally in their host countries.
• Tax Equalisation and Protection: Developing systems to protect employees from excessive tax burdens and ensure a fair taxation process.

What is the importance of a global mobility strategy?

A well-defined global mobility strategy is essential for businesses aiming to successfully deploy talent across international borders. It offers several benefits, including:

• Talent Optimisation: A strategic global mobility plan ensures that the right talent is deployed to the right markets, maximising the efficiency and effectiveness of international assignments.
• Tax Compliance and Risk Management: By understanding the tax implications of cross-border assignments, companies can avoid penalties and legal issues arising from non-compliance with local tax laws and regulations.
• Cost Management: Properly managing international assignments through a global mobility strategy can reduce costs associated with expatriate tax, compensation, and benefits.
• Employee Satisfaction and Retention: Providing employees with a seamless global mobility experience—addressing everything from tax compliance to visa management—can increase their satisfaction and improve retention rates.
• Business Continuity: A clear mobility strategy ensures that your business is prepared for changes in tax laws, immigration rules, and other international regulations, providing business continuity and reducing disruption.

By incorporating global mobility into a company’s overall strategy, businesses can effectively manage employee movement while maintaining legal compliance, minimising risk, and maximising business success.

Employees working abroad

Considering moving to or leaving the UK for work or lifestyle?

Understanding UK tax laws in conjunction with local laws of other jurisdictions is a challenging aspect of planning your move. Each country has its own laws on how an individual is taxed on their worldwide income, dependant on their tax residency laws and the rate of tax applicable to the income or gains.

In addition to the local laws, the UK has a number of double tax treaties with other jurisdictions that may provide treaty protection or relief. These should all be considered to ensure all obligations are met.

Our services

Our specialist team offer end to end advisory and compliance services. This will enable you to feel comfortable with any plans or structures that are put in place to ensure you do not pay unnecessary tax in the UK or overseas. Following on from the robust planning we can assist with any filing obligations you have in the UK.

Our financial planing team can advise you on your UK pension arrangements, and broader financial planning requirements.

We can also utilise our global network to ensure such obligations are met outside the UK and you understand your requirements. We can operate this as a one-stop-shop so that you only have one contact point.

We would like to help you make confident decisions about the future and maximise relief available to you. We look forward to working with you.

Want to learn more about how we can help?

Contact us to arrange to speak with one of our specialists in London, Kent and Sussex.