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1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. See Simon's Taxes E6.300 for full details. Liability to inheritance tax (IHT) will also move to a residence-based regime (rather than one based on the individual's domicile) from 6 April 2025. See Simon's Taxes I9.200 for full details. The commentary below is potentially impacted by one or both of these changes, which are to be legislated in Finance Act 2025.

The obligation to withhold UK income tax and social security on earnings often depends on the location of the employer and the individual's chargeability to UK tax and National Insurance. Where relevant, chargeability to tax and NI is briefly discussed (particularly in the context of a globally mobile employee). However, in the most part, it is assumed that the reader will have already determined the individual's chargeability to tax and NI and is simply seeking