The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
There are special rules for employees who perform their duties overseas and also for employees who come from overseas to work in the UK. The rules relating to overseas business expenses have a number of specific tests.
This guidance note relates to the expenses of those individuals, not their residency status for tax purposes which may also need to be considered. For more about these aspects of the employee’s tax status, please refer to the Residence and domicile ― effect on tax liability guidance note.
Prior to considering the special rules for overseas business expenses, first consider the travel and subsistence rules explained in the Travel expenses and Subsistence expenses guidance notes. If an expense is allowable under these rules then there is no requirement to consider the tests for overseas business expenses, eg there is no requirement to look at the residence or domicile of an employee under those rules.
HMRC publishes some useful guidance in 490: Employee travel.
It is likely that the majority of overseas travel will be covered by the usual rules for performance of duties and for necessary attendance (see the Travel expenses guidance note).
For example, an employee is required to visit a client overseas in order to do some work. Under the general rules, all of the travel and subsistence expenses (subject to those being allowable expenses under those tests) are allowable expenses for the employee. There is no need to consider the more specific tests under the overseas business travel legislation.
If an employee is required to travel to an overseas conference, consider whether it was necessarily incurred in the performance of the duties of the employment. If it was not, it is also unlikely to qualify for a deduction under the special rules for overseas travel.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.