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.

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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.\