Employment income form abroad

Employment income form abroad

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I have a client who has worked in Russia and received as part of her contract a fee income, per diem of $90 per day plus rent allowance and flight allowance.  Am I correct in thinking that the whole of this income converted to UK sterling is to be declared on her UK tax return (I have worked out she is UK resident) and that no employment expenses are deductible against this as she made the choice to work abroad rather than sent on a secondment.  Any help would be appreciated.

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By David Heaton
27th Jan 2016 15:20

ITEPA ss 370, 371, 376

There are special reliefs for British residents who work abroad, to allow for the fact that getting to and from work is usually not deductible.  The earnings are taxable, probably in Russia first, with the UK giving credit for Russian tax, but you may get some relief for travel and accommodation costs if you meet the conditions in ITEPA.

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