A new Brexit agreement has been reached this week between the UK Government and the European Union. Approved by EU heads of state it still requires approval from the UK and European Parliaments in the coming days.
If approved, this should bring a temporary period of certainty for employers in managing social taxes for internationally mobile employees in Europe. There remains uncertainty afterwards but on a positive note there's potential to plan for an interim period.
Deal or no deal international mobile employees from or in Great Britain are likely to be affected. We have also already seen possible preparations in Ireland to attract talent in this completive market as the government announced an extension of the beneficial SARP regime for international assignees for a further two years.
So what can and should you do?
- Understand the current scope of the potential issue. Review your current list of employees and determine those who may be able to rely on old bilateral agreements and those who cannot, and begin to put in place arrangements to enable a switch to local social security where this may become necessary.
- Determine your policy around the potential increase (or decrease) in costs should a switch to host social security become necessary
- Communicate with your employees so they know what you are doing to prevent them from being adversely impacted.
For further analysis and updates on what the Brexit deal may mean for your business visit, Politics and economy from Grant Thornton UK.