The following Employment Tax guidance note Produced by Tolley in association with Annette Morley provides comprehensive and up to date tax information covering:
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.
Changes to UK residence status affect employees leaving the UK in different ways depending on factors which include:
the reason they are leaving
their new location
the location of their employer
the nature of their employment
the anticipated duration of their absence from the UK
The statutory residence test (SRT) determines an individual’s UK residency status. It is used for income tax purposes but not for NIC.
The SRT is examined in detail in the Statutory residence test guidance note, but main points of the rules are included here where relevant to explanations. Note that there is no longer any reference to ‘Ordinary Residence’ as that concept has been abandoned. The principles behind it have all been incorporated within the SRT.
For further action points when an employee leaves the UK, see the Outbound employees ― payroll issues and Reporting requirements on leaving the UK guidance notes.
Those leaving the UK ‘temporarily’ are covered in the Temporarily overseas guidance note. That note covers not only individuals leaving the UK for a relatively short term, but also the rules affecting individuals since 6 April 2013 who return within five years.
The basic position is that where an individual is resident in the UK for any part of a tax year, he is taxed on his worldwide income and gains for the whole of that year as if UK resident throughout.
ITEPA 2003, s 20 sets out what taxable earnings are from an employment in a tax year in which the employee is non-UK
**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
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.