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Temporarily overseas


Produced by Tolley in association with
Employment Tax
Guidance
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Temporarily overseas


Produced by Tolley in association with
Employment Tax
Guidance
tag-icon Brexit
imgtext

Introduction

There are some differences in the tax and NIC treatment for employees who only work overseas for a short period, compared with those who go overseas on a substantial assignment or permanently.

Income tax

An individual on a temporary work assignment overseas might be UK resident or not. This will depend on the facts as determined by the statutory residence test (SRT) (see the Statutory residence test guidance note for details of the SRT). In this context, the determinant is likely to be the length of the period overseas. An employee moving away from the UK to take up permanent full-time employment overseas is likely to become non-resident. See the Foreign employment guidance note.

Even though the overseas placement might be temporary, it is feasible that there would be a tax liability imposed by the foreign jurisdiction. The position should be checked against the relevant double tax treaty. Mostly, these have a 183-day rule before residency is imposed. There could be a clause that exempts tax liability in the host country, particularly where the employee

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Annette Morley
Annette Morley

Consultant at Annette Morley Advising

Annette, a Chartered Tax Adviser, is a successful and experienced consultant who advises on specialist tax areas in a wide context to achieve optimal solutions.  Her clients include corporates, partnerships, individuals, Trusts and accountancy firms needing advice on specialist tax issues.  She has advised agricultural businesses, run her own successful accountancy practice in Devon and has been tax director of a progressive firm of London-based Chartered Accountants.  She is involved with the Chartered Institute of Taxation as vice-chair of their OMB technical committee and she is a member of the accountants group 'Heads Together'.  Her specialisms include overseas and cross-border tax issues, corporate work, employment reward and share schemes, capital taxes and venture capital schemes.  She is also a qualified agricultural consultant and advises on the particular tax areas vital to rural businesses and estates.

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  • 03 Aug 2023 09:41

Home/ ½Û×ÓÊÓƵ Guidance/ Employment Tax / Managing global mobility

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