Overseas Work Relief

OVERSEAS WORK RELIEF

Award Winning
London-Based
Immigration Tax Advisors

The Overseas Workday Relief (OWR) is a valuable exemption available only to foreign domiciles UK tax Residents residing in the UK, which treats part of the earnings from UK work done wholly or partly abroad as if it were a foreign source of income. If the part earned abroad is not sent to the UK, then it is not taxed in the UK. Accordingly, any PAYE tax deducted at source from your salary may be refunded. Our tax advisors will advise you on eligibility and explain the benefits of Overseas Work Relief (OWR). 

YOU NEED THE FOLLOWING TO CLAIM THE OVERSEAS WORKDAY RELIEF (OWR):

  • be a tax resident in the UK in the tax year following three consecutive tax years of non-UK tax residency,
  • have a foreign domicile,
  • elect to be taxed on the remittance basis,
  • be employed in the UK, 
  • perform duties wholly or partly abroad, 
  • keep that proportion of income to foreign duties abroad in an offshore bank account, 
  • keep accurate records to support your claim. 

Special mixed fund rules apply to a qualifying account which treats all the remittance over the year as a single remittance. This makes the process of calculating the remitted earnings to the UK simpler. 

If there are split rules then the relief may apply in the year of arrival/departure. It only applies to that part of the tax year when you are a UK tax resident. 

The team of tax advisors of Expat Ltd will help you with understanding and applying for Overseas workday relief, as well as communicate with the UK Tax Authorities on your behalf.