UK bonus for work overseas

by **tax-bill** on Mon Jan 30, 2012 11:36 am

Mr A works abroad in tax year 2010/2011 and is classed as non resident and as such does not pay UK tax on his overseas earnings.
He returns to the UK in tax year 2011/2012 and receives a bonus in the UK relating to the work he did when he was overseas and non resident. Does the fact that the payment related to work done when he had a NT code affect his liability to UK tax on the bonus.
I rather think not - but though I would throw ot out there.
Hope someone can clarify.
Thanks
Tax-bill.

by **etf** on Mon Jan 30, 2012 3:46 pm

Hi tax-bill

There is a good chance that Mr A's bonus is not liable to UK tax on the basis that it was earned for a period when Mr A was non-UK resident.

This link may help:

http://www.evatassurance.com/NR/rdonlyres/ewlimxktyhasjulh5oliya5i6qdqzkwoj6mof2ywvzs7exoikboqilu6pmvh4slg3kkuyzek47xubrk3kju6m63soaa/Human+Capital+Alert+24.pdf

It is probably worth double checking whether Mr A received any bonuses which were paid when he was non-UK resident but which relate to work performed when UK resident as these could be liable to UK tax.

Kind regards

etf

http://theexpatriatetaxfactory.com

by **tax-bill** on Mon Jan 30, 2012 5:19 pm

Thanks for the reply etf.
Unfortunately I cannot open the link you sent me. Can you recommend another place to visit for the info.
Thanks again.
Tax-bill

by **etf** on Mon Jan 30, 2012 5:27 pm

http://www.evatassurance.com/NR/rdonlyres/ewlimxktyhasjulh5oliya5i6qdqzkwoj6mof2ywvzs7exoikboqilu6pmvh4slg3kkuyzek47xubrk3kju6m63soaa/Human+Capital+Alert+24.pdf

Apologies tax-bill-looks like I cut the link in half-hopefully the above will work.

etf

by **etf** on Mon Jan 30, 2012 5:32 pm

No, it is not me-it is just the link is too big for the screen as the same thing has happened again. Try googling E&Y taxation of bonuses in the UK update March 2008.

Regards

etf