On 25 September 2024, we held a webinar on the key aspects of posting workers to third countries, with a focus on the United Kingdom (UK). We hosted Sonja Omerza, Senior Manager at A Tax International, who provided participants with important information and tips for anyone planning to post workers to the UK. She highlighted the key legal, tax and social aspects that employers and employees need to take into account to avoid complications arising from the posting. The webinar was moderated by Žiga Fišer from the British Embassy in Ljubljana.

Posting workers to third countries, including the UK, brings additional requirements compared to posting to countries within the EU. The Employment Relationships Act (ZDR-1) determines that a posting occurs when an employer sends a worker employed in Slovenia to work abroad. If the posting is already foreseen in the employment contract, the posting can be regulated by annexes, otherwise a new employment contract must be drawn up to regulate the rights of the employee abroad.

Before starting the posting, it is essential to determine which type of visa is required, Omerza highlighted. A visa is not necessary for a business visit. However, for performing work in the UK, a valid work permit (visa) must be obtained. The process for obtaining a work visa involves submitting an online application, completing biometric registration, and providing the required documentation at the British Embassy (in Ljubljana). The required supporting documents and processing times depend on the type of application and location of submission. The work permit must be secured before commencing work; otherwise, entry into the UK will likely be denied if the proper documentation is not in place. If the posting lasts longer than 90 days, the employee must register their temporary foreign address with the relevant authority in Slovenia within 15 days of settling.

You can enter the UK as a standard visitor for up to six months without a visa if you are carrying out certain activities, such as attending meetings or conferences, academic research, or carrying out certain paid activities or events for organisations based in the UK.

More information: How to apply for a visa to come to the UK: Choose a visa - GOV.UK (www.gov.uk)

Special attention has also been paid to the tax aspects of posting. Income, reimbursements and benefits received by an employee in the context of a posting are taxable in the UK, even if they are paid abroad (e.g. allowances for living expenses, housing, company cars). As Slovenia has a double taxation convention with the UK, double taxation can be avoided, but the rights are not automatic and must be exercised, e.g. by objecting to an informative calculation. In the case of double tax residence, the key is to establish tax residence under the Convention, which is a complex process and it is advisable to engage local advisers. However, the personal allowance for taxable income in the UK is slightly higher than in Slovenia, which may have a favourable impact on the overall tax burden in certain cases.

Participants also received important information on international remote working opportunities, which are becoming more and more common in the post-pandemic time. The EU is also starting to regulate this area, in particular in the field of social security. The most challenging issue is which law applies to remote workers, in particular for so-called digital nomads who work from different countries. The Rome I Regulation provides that the worker and the employer may choose the law of the country applicable to the employment contract, but this choice must not deprive the worker of the protection to which he or she would be entitled under the law.

The webinar was organised in cooperation with SPIRIT Slovenia, the Ministry of Economy, Tourism and Sport and A Tax International.

For further questions and clarifications, please contact A Tax International.