Coming To The UK For Work

Working For Current Employer Or Taking On A New Role

You may be working for an existing employer considering secondment to the UK, or you may simply be taking on a new role.

Either way, chances are that tax may not be top of your list of considerations, what with moving family, belongings, getting to grips with UK cuisine!

However, without considering UK taxes carefully, your move may not be quite as rewarding as you may have initially thought. Here are a couple of tax saving ideas to help you retain and enjoy the benefits of being an Expatland-London employee.

Temporary UK Assignment – Detached Duty Relief

Your employer has suggested a secondment to their UK subsidiary to gain international experience.  Without planning you may well miss out on the valuable detached duty relief.

This tax relief allows you to reclaim your travel and subsistence costs during secondments of up to 2 years.  These costs can include:

  • Accommodation
  • Travel to your workplace in the UK i.e. train tickets, mileage allowance
  • Groceries
  • Utility bills

Keep full records of all of these costs, register with HM Revenue & Customs on your arrival to the UK and make a claim for these costs on your UK tax return.

Just a tip, you cannot unfortunately claim for accommodation costs in respect of your family.  However,  you can claim for the costs of up to two return trips home in a year for your spouse and family and unlimited trips home for yourself for up to five years.

Longer Term Employee

If you are non UK domiciled working in the UK, you can claim exemption from tax in respect of the proportion of your salary relating to work that you perform overseas.

The conditions are:

  • your salary must be credited to a non-UK bank account. Many UK banks have offshore branches in for example the Isle of Man.
  • the funds related to the exempt amount must be retained outside of the UK. If any amount is brought into the UK the claim is reduced accordingly.
  • It must be your own account just containing funds from the employment
  • The claim can only be made for the year of arrival in the UK and subsequent two tax years

Excellent record keeping and planning is essential to ensure that you retain the benefit of these tax breaks.

If you would like to know more about moving to the UK and tax, feel free to get in touch.

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