EIM35010 - Travelling expenses: Non-resident and qualifying new resident employees working in the United Kingdom: Introduction

Sections 373 to 375 ITEPA 2003

Introduction

The rules on travelling expenses provided by sections 373 to 375 apply to:

  • employees who are non-resident or a qualifying new resident in the United Kingdom, and
  • perform the duties of their employment here.

The rules deal with travel expenses. There is no provision for any deduction to be given in respect of accommodation or subsistence at the United Kingdom workplace if this is provided by the employer either for the employee or the family.

Conditions

  • The employee must be non-UK resident or a qualifying new resident in the United Kingdom
  • the expenses, etc. must be included in the employee's earnings (in the usual case, the expenses, etc. will have been met or reimbursed by the employer) and
  • each employee must satisfy:
    • the conditions regarding the time limit and the qualifying arrival
    • the specific conditions relevant to each expense.

Definitions

Residence - UK residence is determined by reference to the Statutory Residence Test. For more information, go to HMRC manual RFIG20000 and the guidance notes at RDR3.

Qualifying new resident 바카라 사이트“ An individual is a qualifying new resident if he or she is UK resident for the tax year and was not UK resident throughout the previous 10 UK tax years. He or she will continue to be a qualifying new resident for any of the next three tax years for which he or she remains UK resident, as individuals can be qualifying new residents for up to four UK tax years. Any individual who is a member of the House of Commons or the House of Lords for any part of a UK tax year is disqualified from being a qualifying individual for that tax year. See EIM43560 for further guidance.

Qualifying arrival date 바카라 사이트“ A date is a qualifying arrival date if it is the date on which the employee arrives in the UK to perform the duties of employment and either one of two conditions is met:

  • Condition A - the individual has not been in the UK for any purpose during the period of two years ending the day before the date of arrival.
  • Condition B - the individual was not resident in the UK in either of the two preceding tax years before the tax year in which the arrival date falls.

This is defined at section 375 ITEPA 2003. For further information, see EIM35060.

United Kingdom - United Kingdom means - England, Wales, Scotland, Northern Ireland, the territorial seas extending to the 12 mile limit from the shoreline and airspace over that land and sea. Further advice may be found at EIM40032.

Amount of deduction

If the conditions above are met, then a deduction from earnings is allowed at the following amounts:

  • the amount included as earnings where the journey is wholly for the purpose of the performance of duties in the UK.
  • the amount properly attributable for the purpose of performing duties in the UK where the journey was only partly for such purpose.