- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch
Where Taxpayers and Advisers Meet
Significant Breaks - Third Automatic Overseas Test
Hi, I work full time overseas but will be in the UK for approximately 55 days. This will consist of me working in the UK and being on annual and paternity leave at various times within this 55 days period. Would this count as a significant break from overseas work?
Re: Significant Breaks - Third Automatic Overseas Test
A "significant break" from work occurs where at least 31 days go by and not one of those days is a day on which an individual does more than three hours work overseas or not one of those days is a day on which the individual would have done more then three hours work overseas but for being on annual leave, sick leave or parenting leave.
Re: Significant Breaks - Third Automatic Overseas Test
Thanks for your message.
i just wanted to check whether a mixture of annual leave and paternity leave in the period of 55 days in the UK would cause me to have a significant break. I will also be working whilst in the UK so its a mixture.
i just wanted to check whether a mixture of annual leave and paternity leave in the period of 55 days in the UK would cause me to have a significant break. I will also be working whilst in the UK so its a mixture.
Re: Significant Breaks - Third Automatic Overseas Test
It roughly translates as a period of 31 days where you don't work abroad or have sick leave or have (regular) annual leave or have parental leave. If you have a day with any of these four, the clock restarts.
If you have parental and annual leave, you would only be at risk of a significant break if your leave was all front or end loaded, leaving a 31 day break of neither during your 55 days in the UK.
You should also watch out if your analysis depended on one or more odd days of leave, where you could not honestly say that you would have worked abroad if not for the leave (i.e. if you worked in the UK Tuesday and Thursday, but took leave on the Wednesday, you could not honestly say that you would have worked abroad on that Wednesday if not for the leave).
If you have parental and annual leave, you would only be at risk of a significant break if your leave was all front or end loaded, leaving a 31 day break of neither during your 55 days in the UK.
You should also watch out if your analysis depended on one or more odd days of leave, where you could not honestly say that you would have worked abroad if not for the leave (i.e. if you worked in the UK Tuesday and Thursday, but took leave on the Wednesday, you could not honestly say that you would have worked abroad on that Wednesday if not for the leave).
Re: Significant Breaks - Third Automatic Overseas Test
Many thanks for your helpful response. So say when I arrived in the UK i had a day of annual leave so the clock starts from then. If then within a 30 day period I go on annual and paternity leave in one block and stay in the UK, does that then reset the clock?
Re: Significant Breaks - Third Automatic Overseas Test
You are to be within the UK for a 55 days period.
You suggest arriving in the UK and on the day of arrival you take that day as annual leave.
In the next successive 30 days you will wok in the UK on some days and take annual leave and/or paternity leave in the UK on the other days.
This particular 31 day period will constitute a significant break if you did not in fact work outside the UK on any one of these 31 days (which presumably will in fact be the case) OR on any day in this period if you are on annual leave/paternity leave you would not have worked outside the UK on any of these days had you not been on such leave.
The significant break issue will thus be a problem if, on any of the days in any 31 day period within your 55 days total you are on annual/paternity leave but had you not been on such leave you would not have worked overseas on those days.
Effectively, within your 55 day period in the UK there are 25 possible 31 days periods which would need to be examined.
.
You suggest arriving in the UK and on the day of arrival you take that day as annual leave.
In the next successive 30 days you will wok in the UK on some days and take annual leave and/or paternity leave in the UK on the other days.
This particular 31 day period will constitute a significant break if you did not in fact work outside the UK on any one of these 31 days (which presumably will in fact be the case) OR on any day in this period if you are on annual leave/paternity leave you would not have worked outside the UK on any of these days had you not been on such leave.
The significant break issue will thus be a problem if, on any of the days in any 31 day period within your 55 days total you are on annual/paternity leave but had you not been on such leave you would not have worked overseas on those days.
Effectively, within your 55 day period in the UK there are 25 possible 31 days periods which would need to be examined.
.