5. Example of initial external advice and costings

Please note that the costs below are illustrative only; actual costs will vary depending both on the country where the employee will be based and their nationality. Other factors may also affect the overall cost as well.

1. The Department completes an initial data collection questionnaire (around 30 questions)
2. The external expert reviews the questionnaire and provides an initial overview of what issues need to be considered in relation to employment in the host country - £950 + VAT.
3. The Department makes a 'stop/go' decision as to whether to move the next stage or not.
4. If the Department decides to go ahead with the individual starting overseas, the following costs can be expected:
   • The fee quote for colleagues in the host country to provide guidance on the likely income tax, social security and payroll implications is as follows, depending on the preferred approach:
     • a) Written summary - £3,500-4,000 + VAT
     • b) Call between a Department representative, external expert (UK) and external expert (host country), followed by a high level summary email of the key points - £2,500 + VAT
   • Advice on the permanent establishment (taxable presence) implications and the immigration implications will be for an additional fee.
   • More than one advisory call could be needed (each with an associated, additional cost)
   • The advisory calls do not include the actual setting up of the payroll and operation of it in the host country- that would all be additional cost on top of the advisory calls. Typically, we can expect this to be from £2,000 with additional running costs of around £150 per month, in the most straightforward cases.

In addition to external advice regarding income tax, social security and work permits etc, Departments may also need to factor in additional costs associated with seeking legal advice on the pension arrangements.