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Where Taxpayers and Advisers Meet

Visa Fees

thedragon
Posts: 1
Joined: Fri Dec 23, 2016 7:17 pm

Visa Fees

Postby thedragon » Fri Dec 23, 2016 7:23 pm

Hi,

I am an American and I have accepted a job with a company located in the UK.

The company is having me apply for a Tier 1 Exceptional talent work visa.

The total cost to me for obtaining the visa will be around 2000 pounds, including the Immigration Health Surcharge.

The company told me that they will reimburse these fees; will this reimbursement be taxable?

I am obtaining the visa for the specific purpose of being able to work at the company.



Thank you.

etf
Posts: 618
Joined: Mon Nov 02, 2009 5:25 pm

Re: Visa Fees

Postby etf » Sat Dec 24, 2016 10:40 am

Dear "exceptionally talented" dragon,

The following may assist:

From: Rajamanie, Basil (PSN)
HM Revenue and Customs

30 April 2010

Thank you for your e-mail of 12 April concerning visa fees.

The tax rules governing travel costs and expenses where the duties are
performed abroad or where the duties are performed by non-domiciled
individuals in the UK are covered in sections 370 to 374 of the Income
Tax (Earning and Pensions) Act 2003. HMRC has accepted that the costs of
a visa qualify as "travel facilities for a journey" and guidance on this
is available in paragraph 7.10 of Booklet 490. However it is important
to note that visa costs qualify only if the other conditions in those
sections are satisfied in full. I would also point out that relief under
section 373/374 is subject to a 5 year limit from the date a
non-domiciled employee arrives in the UK, so a visa renewal more than 5
years after arrival would not qualify for relief. Full guidance is
available in Chapter 7 of Booklet 490
(http://www.hmrc.gov.uk/helpsheets/490.pdf) and the Employment Income
Manual from EIM 34000 onwards
(http://www.hmrc.gov.uk/manuals/eimanual/...).

An employer can claim for a visa fee paid on behalf of a prospective
employee as a business expense in the accounts, provided the sole
purpose in paying the fee is to secure the services of the prospective
employee.

I hope you find this reply helpful.

Basil Rajamanie
PAYE, SA & NIC
Employment Income Policy


Kind Regards

etf

www.theexpatriatetaxfactory.com


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