Short-term employments in the UK

By Tolley in association with Paul Tew
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The following Employment Tax guidance note by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:

  • Short-term employments in the UK
  • Business visitor scheme ― EP Appendix 4
  • Agreement to use an annual PAYE scheme
  • Multiple short-term secondments
  • NIC position for short-term working in the UK
  • Brexit

Strictly, the earnings for any UK workday are taxable in the UK under ITEPA 2003, s 27 (the arising basis), even if the employee only works for a day or two in the UK. If an individual is non-resident, only the earnings relating toUK workdays are taxable in the UK (the non-UK earnings of a non-resident are not taxable, even if remitted tothe UK).

However, if an office or employment is carried on substantially outside of the UK in a year, any duties performed in the UK by a resident outside the UK, which are merely incidental tothe work done abroad, are treated as duties performed outside the UK under ITEPA 2003, s 39. This means that earnings for UK workdays are not taxable in the UK. Examples of duties that may be treated as merely incidental are given at EIM40204.

Business visitor scheme ― EP Appendix 4

It may be possible torelax the strict duty for the employer tooperate PAYE for individuals on short-term business visits tothe UK and for the individual tocomplete a self assessment tax return. Under the short-term business visitor arrangement, also called ‘Employment Procedures (EP) Appendix 4 agreement’ (EP APP 4), exemption from UK tax for UK-sourced earnings can be claimed for an individual resident in a country which the UK has a double taxation treaty with, that includes an article on Dependent Personal Services (that deals with salary payments) and where all the following conditions apply:

  • the employee is expected tostay in the UK for a period not exceeding in total 183 days in any 12-month period (certain double taxation treaties specify 183 days in a tax year; so with residents of those countries, this is the test to

More on Coming to the UK: