> I'm guessing most people paying folks overseas sort of
> do it under the table, since they can't be
> 'employed' anyway, based on what you suggest.
Most people don't employ people overseas directly. :) It's
usually done via a foreign company in the employee's locale.
You can most certainly do it under the table and deduct the
expenses as payments to an imaginary vendor in the UK - but
that means your employee will not be paying taxes, which
means jail time in most countries if caught. It's probably
better to go through the PITA and costs than risk them going
to jail.
I doubt you will get jail if caught in this scenario, but
it is quite likely the deductions will be denied resulting
in more tax, fines, and penalties.
-- Nitzan
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