Employment Tax

Overview of international aspects

Produced by Tolley
  • 19 Oct 2021 23:28

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Overview of international aspects
  • Taxation
  • National Insurance
  • Pensions
  • National Minimum Wage

Overview of international aspects

The UK rules on tax, National Insurance, pensions and employment law have all been developed primarily for application to employees who are domiciled and permanently resident in the UK, and employed by UK employers.

However, in today’s worldwide economy it is not unusual to have individuals moving across borders to take up work in another country, either as a new employment or as a temporary secondment. International business trips are by no means uncommon. Multinational companies may move staff from a post in one country to a new job in another. In short, the world of employment is becoming increasingly more internationally mobile.

The international topic in this module focuses on the particular rules that apply to internationally mobile employees.

Taxation

The key factors determining the tax treatment of an individual’s income from employment are:

  1. whether the employee is resident in the UK (see the Statutory residence test guidance note)

  2. whether the employee is domiciled in the UK or deemed domiciled in the UK (see the Domicile overview guidance note)

  3. the location where the duties of the employment are carried out (see the Foreign employment guidance note)

  4. the residence of the employer (see the Location of employer and effect on liability guidance note)

  5. the application of any double taxation agreement (see the Double taxation agreements and employment taxes guidance note)

An employee is subject to income tax in the UK if he is resident in the UK or he is carrying out employment duties in the UK. More specifically:

  1. if an employee is UK resident and UK domiciled, he is liable to UK tax on his worldwide earnings

    If an employee is UK resident, does not meet the three-year non-residence requirement and is non-domiciled with the remittance basis applying, any earnings in respect of duties performed wholly overseas for a foreign employer are taxable only if they are remitted (brought) to the UK (see the Remittance basis ― overview guidance note).

  2. where an employee is UK resident,

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

LEARN MORE LEARN MORE

Popular Articles

Patent box tax regime ― overview

Introduction to the regimeThe aim of the patent box regime is to provide an incentive for companies to develop and retain patents and other qualifying intellectual property within the UK as part of the Government’s growth agenda. Finance Act 2012 originally introduced the legislation governing the

22 Dec 2021 16:12 | Produced by Tolley Read more Read more

Repayment of tax ― individuals

If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to

28 Oct 2021 08:30 | Produced by Tolley Read more Read more

Chargeable transfers

This guidance note provides an overview of the basic principles of inheritance tax, when it is charged and how it is calculated. It contains links and references to other parts of the module where more details can be found.Transfers of valueInheritance tax is based on the concept of a transfer of

10 Jan 2022 15:01 | Produced by Tolley Read more Read more