Employment Tax

Short-term employments in the UK

Produced by Tolley in association with Paul Tew
  • 19 Oct 2021 23:27

The following Employment Tax guidance note Produced 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
  • Taxable short-term business visitors from overseas branches
  • Multiple short-term secondments
  • NIC position for short-term working in the UK
  • Brexit

Short-term employments in the UK

Strictly, the earnings for any UK workday are taxable in the UK under 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 to UK workdays are taxable in the UK (the non-UK earnings of a non-resident are not taxable, even if remitted to the 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 to the work done abroad, are treated as duties performed outside the UK. 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 to relax the strict duty for the employer to operate PAYE for individuals on short-term business visits to the UK and for the individual to complete a self assessment tax return. See the Short-term business visitors (STBVs) guidance note.

Taxable short-term business visitors from overseas branches

A further simplification of PAYE procedures for short-term employments undertaken in the UK was introduced for tax year 2015/16 onwards for short-term business visitors. This arrangement is a contractual agreement between the employer and HMRC and only applies to short-term business visitors whose UK workdays in the tax year total 30 days or less and tax is due. This has been replaced and extended by the Appendix 8 arrangement from 6 April 2020. See the Short-term business visitors (STBVs) guidance note.

Multiple short-term secondments

An employee can work in a number of various countries, including the UK, on a series of short-term contracts resulting in a prolonged spell away from the

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