Remittance basis ― overview with employment focus

Produced by Tolley in association with and Steph Carr of BDO LLP

Employment Tax

Guidance

Key points

•
provided certain conditions are met, Overseas Workday Relief (OWR) can be an extremely valuable form of tax relief for non-domiciled individuals who perform employment duties both in the UK and overseas
•
Up to 2024/25 OWR is only available in the tax year of arrival and subsequent two tax years following a three year period of non-residence
•
OWR is generally calculated by reference to the percentage of days an individual spends working overseas
•
a bank account which qualifies for the special mixed fund rules allows for all offshore transfers to be treated as one single transfer for the year and all remittances as one single remittance

Abolition of non-UK domicile basis of taxation from 6 April 2025

The non-UK domicile basis of taxation is withdrawn from 6 April 2025, From that date, OWR is replaced with a new system of foreign income relief. Details of the new relief qualifying conditions, and of the transitional provisions for those who do not

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Nicole Caraglia

Tax Manager, BDO LLP , Employment Tax, Global Mobility

Nicole is a Tax Manager within BDO London's Global Employer Services tax team. She has specialised in expatriate tax for 10 years, working in a Big 4 and a much smaller professional services firm before joining BDO in 2021.She has worked with a variety of clients, ranging from individuals and start up companies to global corporations with large global mobility programmes.She has experience in assisting clients with their global mobility programmes as well as regular consulting around assignment planning, remote working arrangements, employment taxes, social security and expatriate payroll operation.Nicole has contributed to TolleyGuidance in Employment taxes.

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