The following Employment Tax guidance note by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
Non-resident employees’ UK-based earnings are taxed under ITEPA 2003, s 27. Employees who are only resident in the UK are not chargeable to UK tax on general earnings for duties performed in the UK. For this purpose, the critical test is the place of performance of the duties, not the location / residence of the employer.
An employee who is resident in the UK is taxed on their general earnings for the tax year under ITEPA 2003, s 15 other than in the two following situations:
Where earnings need to be apportioned to decide the extent of earnings attributable to UK duties, the apportionment must be on a just and reasonable basis.
If the tax year is a split year, ITEPA 2003, s 26 applies only to foreign earnings attributable to UK workdays.
Where an individual is paid in the UK for all duties, irrespective of where carried out, the income attributable to foreign earnings is received in the UK and is therefore within the meaning of ‘remitted to the UK’ and is taxable under ITEPA 2003, s 26. Where earnings in relation to foreign duties are paid into an overseas
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