Short-term employments in the UK

By Tolley in association with Paul Tew

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

  • Short-term employments in the UK
  • Business visitor scheme ― EP Appendix 4
  • Agreement to use an annual PAYE scheme
  • Multiple short-term secondments
  • NIC position for short-term working in the UK
  • Brexit

Strictly, the earnings for any UK workday are taxable in the UK under ITEPA 2003, s 27 (the arising basis), even if the employee only works for a day or two in the UK. If an individual is non-resident, only the earnings relating toUK workdays are taxable in the UK (the non-UK earnings of a non-resident are not taxable, even if remitted tothe UK).

However, if an office or employment is carried on substantially outside of the UK in a year, any duties performed in the UK by a resident outside the UK, which are merely incidental tothe work done abroad, are treated as duties performed outside the UK under ITEPA 2003, s 39. This means that earnings for UK workdays are not taxable in the UK. Examples of duties that may be treated as merely incidental are given at EIM40204.

Business visitor scheme ― EP Appendix 4

It may be possible torelax the strict duty for the employer tooperate PAYE for individuals on short-term business visits tothe UK and for the individual tocomplete a self assessment tax return. Under the short-term business visitor arrangement, also called ‘Employment Procedures (EP) Appendix 4 agreement’ (EP APP 4), exemption from UK tax for UK-sourced earnings can be claimed for an individual resident in a country which the UK has a double taxation treaty with, that includes an article on Dependent Personal Services (that deals with salary payments) and where all the following conditions apply:

  • the employee is expected tostay in the UK for a period not exceeding in total 183 days in any 12-month period (certain double taxation treaties specify 183 days in a tax year; so with residents of those countries, this is the test to

More on Coming to the UK: