The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Liability to UK tax depends on two key factors: residence and domicile. Residence refers to the individual’s tax status on a year by year basis. Domicile is the place which a person regards as his true home. See the Residence - overview and Domicile guidance notes.
An individual who is not resident and / or not domiciled in the UK may be entitled to some tax reliefs and exemptions on his UK employment earnings.
Up until 5 April 2013, a taxpayer’s ordinary residence status was the third key factor. Ordinary residence arises as a result of a settled purpose and so looks at the position over the longer term. The concept was abolished for tax purposes from 6 April 2013, although there are transitional provisions for up to three years for those who are not ordinarily resident in the UK and are adversely affected by the changes. Therefore you may have to consider a taxpayer’s ordinary residence status until 2015/16. See the Ordinary residence - years to 5 April 2013 and Ordinary residence - transitional rules (2013/14 to 2015/16) guidance notes.
This guidance note discusses the employment earnings of the following types of employee:
For discussion of the employer’s position, see the Inbound secondment payroll issues guidance note (subscription sensitive).
Non-residence is discussed in the Residence - overview guidance note. Non-residents are taxable on ‘general earnings’ in respect of duties carried on in the UK for a tax year. ‘General earnings’ covers salary and most taxable benefits received by employees from their employer, see the Employment income guidance note.
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