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Overseas employment expenses

What foreign employment expenses are allowable?

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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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By Tim Vane
02nd Jul 2020 12:45

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.

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Replying to Tim Vane:
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By Brendonohoe
02nd Jul 2020 13:30

I have asked HMRC as my client was hoping that some of his travel and subsistence expenses might be allowable while he was working overseas. He is self-employed in the UK and was invoicing the foreign employer (in Qatar) although they were taxing him at source over there. He doesn't seem to know whether he was employed or self-employed while working there.

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Replying to Brendonohoe:
By Tim Vane
02nd Jul 2020 15:26

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.

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Replying to thehaggis:
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By Brendonohoe
02nd Jul 2020 13:34

Thanks, that manual, and any info that I have found, only seems to apply to employees working abroad for their UK employer. Are there rules for a UK tax resident who works temporarily overseas for a foreign employer?

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Replying to Brendonohoe:
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By thehaggis
03rd Jul 2020 19:01

Yes. Follow the link I gave you.

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