The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
A relief from UK taxation for the earnings related to non-UK duties has long been a feature of the UK tax system. The availability of the relief has always been subject to certain conditions. Prior to 6 April 2013 these conditions were primarily that an individual had to be considered to be not ordinarily resident in the UK and that the income for those non-UK workdays had to be paid and retained outside the UK. With the abolition of the concept of ordinary residence from 6 April 2013, new rules for overseas workday relief (OWR) were introduced. The purpose of this note is to provide an overview of those statutory rules for OWR, which were introduced with effect from 6 April 2013.
Strictly, OWR is not a relief and is not claimed. It is merely shorthand for saying that some of the earnings for overseas duties have not suffered taxation because they are assessable on the remittance basis and have not been remitted.
As with the changes to UK residence that also took effect from 6 April 2013, these rules are still untested and it remains to be seen how the rules will be interpreted by HMRC when enquiring into an individual’s tax return.
There were a number of fundamental changes to OWR following the abolition of ordinary residence.
Firstly, prior to 6 April 2013 there was no condition regarding domicile status, although there was a requirement for the individual to be not ordinarily resident in the UK. Therefore, both UK and non-UK domiciled individuals could benefit from the relief providing their intention was not to remain in the UK for a period longer than three years.
This changed when Finance Act 2013 amended ITA 2007, s 809B to restrict the remittance basis to individuals who are non-UK domiciled only.
Secondly, prior to 6 April 2013 the relief for income relating to non-UK workdays continued only while the individual remained not ordinarily resident in the UK. Therefore,
**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
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.