Chapter 41 - Overseas Aspects of Employment Income

Question 1

The way in which employment income is taxed depends on what?

Answer 1

1. The residence & domicile status of the employee
2. Where the employer duties are performed

Question 2

What is the receipts basis?

Answer 2

Where earnings are taxed when they are received

Question 3

How is the employment income of someone who is UK resident & domiciled taxed?

Answer 3

UK duties & overseas duties - receipts basis

Question 4

How is the employment income of someone who is UK resident & deemed domicile taxed?

Answer 4

UK duties & overseas duties - receipts basis

Question 5

How is the employment income of someone who is UK resident & non-domiciled taxed?

Answer 5

UK duties - receipts basis
Overseas duties - receipt/remittance

Question 6

How is the employment income of someone who is non-UK resident taxed?

Answer 6

UK duties - receipts basis
Overseas duties - not taxable

Question 7

If the remittance basis is claimed, it applies in respect of earnings for overseas duties performed by a non-dom employee if:

Answer 7

1. Overseas workday relief is available

OR

2. The employee works for a foreign employer and all the employment duties are performed outside the UK

Question 8

When is an employee eligible for OWR?

Answer 8

In any three tax years immediately following three consecutive years of non-residence

Question 9

How does OWR treat earnings between UK & non-UK duties?

Answer 9

It apportions them based on the number of days in the tax year