Have you recently moved to the UK and a Non UK National spending time working overseas?
This relief can lead to significant repayments of UK Tax Deducted through payroll, please do get in touch for more information: Book a Call
The 2024/25 Tax Year is the last Tax Year you can benefit from Overseas Workday Relief.
You must meet the following criteria to claim Overseas Workday Relief
Non Resident for the previous 3 Tax Years: You can claim this relief if you move to the UK, after 3 years of being a Non UK Tax Resident, and you are also Non UK Domiciled. You can check your situation against the statutory residency test to confirm you were Non UK Tax Resident during the 3 previous Tax Years via this link: Statutory Residency Test. If you spent less than 46 days in the UK you were likely Non UK Tax Resident. Your domicile status is similar to your nationality and if this is your first time living in the UK you will likely be considered as Non UK Domiciled.
Time working outside the UK: If you spend time working outside of the UK. You can exempt the proportion of your Overseas Workdays from Income Tax here in the UK. For instance, if 50 days spent working outside the UK and 250 total workdays in the Year. 20% of your Income can be exempted from UK Taxation (50/250).
Remittance Basis Taxation: You need to be taxed on the remittance basis to be eligible for this relief. When Taxed on the Remittance Basis you do lose your Personal Allowance, therefore, you would want to ensure the amount of foreign income exempted from UK Taxation exceeds the Personal Allowance. As you are taxed on the remittance basis, you will not be able to bring the funds relating to the Non UK Workdays into the UK. To ensure eligibility, you can set up a Bank Account based outside of the UK. You can then have your funds paid into this and retain the percentage of income that relates to your overseas workdays within this offshore account.
Offshore Bank Account: You can set up an offshore account with most of the UK high street banks. The account will be based in a location like the channel islands and will have a UK Account Number and Sort Code. This will ensure that funds are completely remitted from the UK. There are special mixed fund rules that need to be considered for remittances unless the account is qualifying - please get in touch and we can make sure you set up a qualifying bank account for an Overseas Workday Relief Claim.
There are changes to the Remittance Basis rules and therefore Overseas Workday Relief claims from 6 April 2025. Please contact us for further information, you will likely still be able to receive relief for your overseas workdays.
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