Unlocking Efficiency in Global Mobility Tax Compliance 

As the global workforce becomes increasingly mobile, UK accountancy firms are facing greater demand for specialist global mobility tax services. Whether advising executives relocating overseas, employees seconded away from the UK, or multinational businesses with complex mobility programmes, the compliance landscape is highly demanding. 

The critical aspect in correctly applying the differing rules and regulations is accurately tracking individual taxpayers’ movements, together with the length of time that they spend in any one geography. 

Many jurisdictions use the cumulative number of days over a tax year as the basis of tax liability and therefore repeat visits to countries adds a level of complexity to what is already a laborious task.  

The challenge for clients 

Individuals face several significant challenges with global mobility and tax compliance. They usually need professional guidance and help form accountants that are familiar with global mobility to help with common issues such as: 

• Determining Tax Residency
• Double Taxation
• Business Traveler Taxation
• Tax Equalisation and Protection
• Taxation of Employee Benefits
• Equity-Based Compensation
• Changing Regulations

The calculations are complicated and dependent on knowing the geographical location of the taxpayer at any given time, together with understanding whether they are working. 

For many taxpayers this means one of three options: 

• Manual tracking using spreadsheets and diaries – often completed retrospectively and prone to missing and inaccurate information 

• Travel and workday journals, completing a manual journal to track workdays, non-workdays, location and the purpose of each trip 

• Travel booking and expenses – wading back through expense claims and reconciling with travel booking confirmations. 

Offering meaningful tax advice and guidance is also dependent on this data and taxpayers often create a tax problem without knowing it due to the retrospective nature of the mobility data they can provide. 

The challenge for accounting firms 

Advising and guiding clients in this area is a challenge. Accounting firms need to know: 

• Clients’ geographic location at ‘trigger’ times 

• Length of time spent working in any one location  

• Non-working time in any one location 

Proactive advice and planning in the area of global mobility tax is only possible if advisors can obtain the relevant information in a timely manner. The accuracy of this information is becoming ever more pressing due to greater connectivity and tracking amongst various boarder protection services around the world. 

Advising clients that they are approaching a potential tax issue due to their travel arrangements or who are likely to trigger a problem because of their upcoming plans relies heavily on the client providing information. 

Accountants need to make that process as easy as possible. 

Using technology to securely track movements  

Global mobility is not only a technical challenge but also a growth area for many mid-market accountancy practices and technologies such as geolocation provide a clear, easily understood point of differentiation for firms. 

Some clients will always have concerns about their movements being ‘tracked’ but offering the option for automated tracking and time stamping according to trigger times and dates is possible and, as the information can be captured and submitted securely, a reality. 

Practice Gateway provides globally mobile individuals with this option through both Apple and Android apps, as well as traditional desktop type log in. Even if a client elects not to make use of the geolocation options, the whole process of capturing travel information and providing this to advisors is streamlined and made significantly less onerous.