Longer-term secondments to the UK

Produced by Tolley in association with Paul Tew
Longer-term secondments to the UK

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

  • Longer-term secondments to the UK
  • Length of stay in the UK
  • Brexit
  • Apportioning PAYE
  • Bonus payments
  • Share ― based income
  • NIC position on long-term assignments in the UK
  • Worker coming to the UK from an EEA country or Switzerland with an A1
  • Worker coming to the UK from a country with a social security agreement with the UK and holding a certificate of coverage
  • Worker coming to the UK from a country with no social security agreement with the UK
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.

This note primarily covers the PAYE (tax and NIC) position of seconded employees working wholly or partly in the UK.

This note does not cover relief from income tax for:

  1. travel and subsistence payments commonly referred to as detached duty or temporary workplace relief associated with secondments of less than 24 months, or

  2. relocation expenses and ‘home leave’ travelling expenses of an employee’s family, which are subject to special rules to qualify for relief

For more on those rules, see the Home leave and employee travel guidance note.

For the purposes of this note, a seconded employee is one who is:

  1. working wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer, or

  2. assigned to work wholly or partly in the UK at a recognised branch of the employer’s business

An employee is always either resident or non-resident for a complete tax year, although split-year treatment may apply. If an individual is non-resident (see the Statutory residence test guidance note), only the earnings relating to UK workdays will be taxable in the UK (the non-UK earnings of a non-resident are not taxable, even if remitted to the UK). The concept of ‘ordinary residence’, which would have been applicable to employees undertaking longer-term secondments to the UK, is no longer relevant from 6 April 2013.

Length of stay in the UK

If the employee is seconded to the UK to work full-time for a period of 365 days or more, with no significant break from

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