Overseas Workday Relief
Overseas Workday Relief
Overseas Workday Relief: what is it?
Overseas Workday Relief (OWR) is a valuable exemption for ‘non-domiciled’ UK residents (more on that below). The relief takes into account the status of the individual, and treats part of their earnings from a UK employment as if it was foreign income – meaning that this portion is not subject to taxation by the UK government.
Who can claim?
If you consider your ‘home’ country to be elsewhere, but have recently begun to work and live in the UK, you would probably be deemed a non-domiciled UK resident, and as such would be eligible to claim OWR (provided that you file your tax return on the remittance basis).
The rules are fairly complicated and we would highly recommend seeking professional expatriate tax advice. IBISS & CO’s expert chartered accountants are very familiar with Overseas Workday Relief regulations and will ensure that you meet the criteria, saving you time and expense and providing you with valuable peace of mind.
Below is a brief summary of the conditions that must be met, but for more detailed information on the regulations governing the OWR, please consult our blog: ‘Expat Tax: How to Claim Overseas Workday Relief’.
To claim OWR, the individual must:
- Be employed in the UK but conduct some – or all – of their duties abroad.
- Be a tax resident in the UK.
- Have their foreign income paid into an offshore bank account.
- In addition, the individual must keep precise records and claim the remittance basis of taxation.
Get In Touch!
How can we help?
The reliefs available are extremely appealing and, provided your affairs are structured correctly, could lead to a substantial tax saving. However – as mentioned above – the rules are complex. For example, in order to claim, you would need to ensure that:
- You plan proactively. Overseas Workday Relief is only available for the first three years after the individual becomes a UK resident, and is often missed by those coming to the UK on short-term placements.
- You have a qualifying bank account – in which to receive the foreign income – set up.
- You undertake proper remittance planning in order to take advantage of the Special Mixed Fund rules.
Feeling confused about Overseas Workday Relief or concerned that you might miss out? IBISS & Co are here to help. Our team of tax specialists and chartered accountants have years of experience when it comes to advising clients on international and domestic affairs, and will work closely with you to ensure that your finances are handled in a manner that saves you time and money. In addition to helping you open an overseas bank account, IBISS & Co will develop a tax strategy to make certain that you take full advantage of all the reliefs available, and that all necessary documentation is in place to support your claim.
It is more likely that HMRC will investigate tax returns that include a claim for Overseas Workday Relief. With IBISS & Co’s expert tax specialists on hand to advise, managing a tax audit will be a hassle-free and successful process. Please contact us to learn more about how we can help you.\
Next Step:
Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.
Accountancy package - built around you
Sole Trader
Accounting
From £29.50 +VAT per month
The best service for:
- Sole Traders
- Self Employed
- Additional Income Workers
- Self Assessment
Ltd company
Accounting
From £71.50 +VAT per month
Perfectly designed and built for:
- Contractors (including IR35)
- Consultants
- Freelancers
- Ltd companies
Small & Growing
Businesses
From £196.50 +VAT per month
A premium fully-managed service:
- Your own dedicated accountant
- Your own dedicated bookkeeper
- Payroll for up to 10 employees
- Face-to-face video meetings
I instructed Ibiss and Co to handle my accounts for my two limited companies, one of which is a regulated law firm. I have been very happy and impressed with the service. The team at Ibiss and Co are very friendly and approachable and have the knowledge and expertise to ensure that the accounts were file properly and in time.
Aejaz Mussa7/11/2019
I had 1h consultancy with Muhammad which was redlly great. He resolved my questions and helped me to understand better the area of knowledge I needed.
Alfredo Marciel10/20/2019
I took advice about company and personal tax, they guided me professionally and gave valuable advice. That really helped me. Always recommend IBISS & Co Ltd as best tax advisor.
saady4u6/24/2019
IBISS & CO is the member of VouchedFor.co.uk, an online IFA directory and ratings portal. Clients can leave independent reviews on their financial adviser, and you can view our real time reviews at the following link.
