MCMANUS HALL
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login
Latest News

Overseas workday relief set to improve

2/27/2025

 
Employees coming to work in the UK should see an improvement in the new version of overseas workday relief set to be introduced from 6 April 2025.

Current system
Under the current system of overseas workday relief, earnings for employment duties performed overseas are exempt from UK tax if:
  • The employee is not domiciled in the UK;
  • The employee is taxed on the remittance basis; and
  • The earnings are not remitted to the UK.
 
Relief is available for a maximum of three tax years.
 
From 6 April 2025
From 6 April 2025, domicile – along with the remittance basis – will be replaced by a new regime based solely on residence. Overseas workday relief will then be available to an employee coming to work in the UK if they are a qualifying new resident:
 
  • They can claim relief for up to four tax years after arriving in the UK, with a separate claim required each year. The claim will be made on the employee’s self-assessment tax return.
  • As is currently the case, a claim will exempt remuneration for duties performed overseas. However, it will not make any difference whether or not this remuneration is remitted to the UK.
  • Relief will be capped (per tax year) at the lower of:
    • £300,000; and
    • 30% of the employee’s worldwide employment income.
 
A qualifying new resident is someone who was not UK resident for the ten consecutive tax years immediately before they arrived in the UK.
 
Under the current system, there is no entitlement to the income tax personal allowance and the capital gains tax annual exempt amount as a result of using the remittance basis. It will be the same under the new system, because a claim for overseas workday relief for a particular tax year will result in the loss of both allowances.
 
HMRC’s technical note on reforming the taxation of non-UK domiciled individuals (with overseas workday relief covered on pages 12 to 16) can be found here.

Comments are closed.

    ​Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    February 2020
    January 2020
    November 2019
    October 2019

Powered by Create your own unique website with customizable templates.
Photos from Pam loves pie, Homedust, wuestenigel, Patrick Cannon Tax Barrister, wuestenigel, Brett Jordan, wuestenigel, raisin_raisin, wuestenigel, SME Loans, Alexandre Prevot, Jirka Matousek, wuestenigel (CC BY 2.0), wuestenigel, Jirka Matousek, moneybright, aronbaker2, foundin_a_attic, QuoteInspector.com, wuestenigel, Kate#2112, Semtrio, Rawpixel Ltd, itmpa, GoSimpleTax, DPP Law, UC Davis College of Engineering, 401(K) 2013, REM Photo ~ Sketchy Internet, Chris Yarzab, focusonmore.com, focusonmore.com, willbuckner, EpicTop10.com, Tony Webster, wuestenigel, B Rosen, London Less Travelled
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login