This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Allowable expenses when working in the UK on an international assignment

Marru
Posts: 4
Joined: Thu Oct 19, 2017 10:09 am

Allowable expenses when working in the UK on an international assignment

Postby Marru » Fri Apr 20, 2018 5:53 am

I'm working in the UK on an assignment. The contract is for at least 2 years, and I receive my salary in Euros. I'm the only employee from my company in the UK and the company isn't registered in the UK, so I'm filing a self assessment tax return. I wondered what living expenses I can claim in this situation?

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Allowable expenses when working in the UK on an international assignment

Postby GlobalTaxAdviser » Fri Apr 20, 2018 5:41 pm

Hi

You maybe able to claim duty detachment relief and National Insurance Exemptions

I would also check if your employer should be paying Employer NIC on your earning under the DPNI Scheme

Further if it is deemed a permanent establishment exists your company maybe liable for Corporation Tax and will have other consequences.

Kind Regards

GTA

Marru
Posts: 4
Joined: Thu Oct 19, 2017 10:09 am

Re: Allowable expenses when working in the UK on an international assignment

Postby Marru » Mon Apr 23, 2018 1:11 am

Social security is paid by my employer and I have an A1/E101, so I should be exempt from paying NI in the UK. As I'm paid a salary and am an employee of the Finnish company, should I actually register for DPNI? I haven't done this yet, so now will I need to report my foreign salary on an SA100?

As I'm on a work assignment in the UK, and away from home, what expenses can I claim?

I will get the company to work out what they need to do regarding setting up a PE in the UK, and any other matters relating to taxation.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Allowable expenses when working in the UK on an international assignment

Postby GlobalTaxAdviser » Mon Apr 23, 2018 2:14 pm

Hi

First of all if your employer has a taxable presence in the UK then it will be obliged to withhold taxes and must register for PAYE. If it deemed to be no permanent establishment then you can continue with self assessment. DPNI is not required as you have the A1 exemption

You can claim expenses such as accommodation, travel, subsistence if your assignment is less than 24 months.

Kind Regards

GTA

Marru
Posts: 4
Joined: Thu Oct 19, 2017 10:09 am

Re: Allowable expenses when working in the UK on an international assignment

Postby Marru » Thu Apr 26, 2018 1:54 pm

Hi,

Thanks for the help GTA. I will make sure the company gets proper advice on these things, both regarding permanent establishment and for my income tax (any suggestions for this?) What happens if the contract is extended beyond 2 years?

For my own tax return can I report foreign income on the SA100 (after converting to £), along with any expenses? I don't suppose there is any need to use SA109 or SA106?

Many thanks,

Mark.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Allowable expenses when working in the UK on an international assignment

Postby GlobalTaxAdviser » Thu Apr 26, 2018 2:05 pm

Hi Mark

It depends on the intention at the outset of the assignment. If the assignment letter says three years then the intent is stay for three year so you could not claim for tax relief on expenses,

After two years you would not be able to claim tax relief on expenses

You will need complete SA102 employment pages

Kind Regards

GTA


Return to “International Tax”

cron