Apologies for replying to quite an old thread but I am in need of some fairly urgent advice.
I am currently employed as a Contract Administrator, working from home, by a company who only operates in the UK. They are an accommodating company, happy to embrace innovative ideas, evidenced by my being the first (and I think still the only) employee to work from home.
I am buying a house in Italy and intend to be resident by 29/03/19 (you can guess why).
I am looking to continue working for my employer as now with the only change being I will be living in Italy and no longer an employee of my current employer. Whilst I appreciate this sounds simple enough I am aware of tax implications, not to mention the “Brexit effect”!
I have thought about being self employed in Italy and invoicing my current employer in Sterling who would pay the invoice directly into a currency exchange account, I would take any hit on exchange rate, I would pay tax in Italy as self employed or some other option.
My initial thoughts are that I would end my employment contract with my current employer and hence save them employers costs as they would simply be paying invoices calculated to my original net monthly pay.
I guess the advice I am looking for is:
a) is what I am proposing/thinking even possible?
b) would my former employer have any tax liability under my proposed approach?
c) what is the best tax option for me as an Italian resident assuming my proposed approach is doable?
d) if my proposed approach is not doable, what alternative approaches are there, preferably ones which save my current employer £ (I have to sell this idea to them).
Many thanks for considering the above and I look forward to some positive advice.
