Hello,
Can anybody point me in the direction of information on what expenses, if any, a UK tax resident can claim against foreign employment income. My client worked overseas, for a foreign employer, for a few months in 2019/20. What expenses can he claim on his UK tax return? I can only find HMRC info referring to overseas expenses for an employee who works abroad temporarily for a UK employer. What about a UK resident living overseas temporarily, working for a foreign employer?
I've called HMRC but have to wait for a Tech advisor to call me back in the next couple of days.
Any help or guidance here would be much appreciated.
Thanks
BD
Replies (6)
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He can claim legitimate expenses incurred in the performance of his duties, just as for any other employment. So, what expenses has he incurred in the performance of his duties?
And, on a side note, why on earth would you ask HMRC for that information? Are you expecting them to keep a list of his expenses?
You should also consider if he is entitled to any reliefs.
Well, if he's invoicing his "employer" then it's not an employer it's a client and he's not employed he's self employed. At least, that's where the balance of probability lies absence any facts to the contrary.
Given that, your next point is to determine his residence status for the period of self-employment and thence to determine where the income is taxable. Once you have determined where it is taxable you can then work out what expenses are allowable according to the tax laws of the relevant country. I suggest that asking HMRC is not going to get you the correct answers to most or any of these questions.