Where Taxpayers and Advisers Meet

Treatment of bonus after moving to UAE

uk_expat
Posts: 8
Joined: Tue Dec 06, 2016 4:33 pm

Treatment of bonus after moving to UAE

Postby uk_expat » Tue Aug 01, 2017 10:49 am

Hi,

I have UK tax resident and working in the UK for the past few years. My current employer is relocating me to a new role in UAE this September. Under the split-year treatment, I will cease to be UK tax resident on the relocation date. I expect to be paid a bonus in February 2018 which covers my performance for the 2017 calendar year. The bonus is at my employer's discretion - I have no contractual entitlement to it.

Will I have a UK income tax liability on this bonus payment?

Many thanks,

uk_expat

AmanSood
Posts: 136
Joined: Mon Jan 09, 2017 4:12 pm

Re: Treatment of bonus after moving to UAE

Postby AmanSood » Tue Aug 01, 2017 12:08 pm

Yes a proportion of the bonus will be taxable in the UK as part of it relates to UK workdays i.e. the period from January to August 2017.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
07792812038

uk_expat
Posts: 8
Joined: Tue Dec 06, 2016 4:33 pm

Re: Treatment of bonus after moving to UAE

Postby uk_expat » Thu Aug 03, 2017 3:07 pm

Thanks AmanSoud. Is there a HMRC guidance note or a section of the tax code that covers this?

etf
Posts: 384
Joined: Mon Nov 02, 2009 5:25 pm

Re: Treatment of bonus after moving to UAE

Postby etf » Thu Aug 10, 2017 10:33 am

The following link may help you find the area that you need to look at.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim40008

KR

etf

www.theexpatriatetaxfactory.com


Return to “International Tax”