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Will split year treatment apply in this case?

Duties are performed abroad, but earnings are paid by a UK employer

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A UK resident intends to leave the UK on 30th September 2020 to work full-time abroad for 3 years approx.  She will be paid by the same UK employer into a UK bank account, until her employer establishes an overseas branch, after which time she will be paid by  the overseas branch . So her pay will be subject to UK tax and national insurance for 18 months approx.  Will she still qualify for split year treatment from 1st October 2020, ie from when she starts  work abroad?                           

If so when I file her S.A. return next year, would I split her UK P60 for 2020/21 and only declare  her income earned in the UK, but declare her total tax paid per the P60, which will result in a tax refund? I have not dealt with a situation where the departing employee, continues to be paid by the same UK employer, so members' views would be much appreciated. Thank you

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By accountantccole
24th Sep 2020 06:24

Where’s she going to?
Sounds like she’s non resident from date of departure and needs to get into the overseas system straight away.
We’re advising clients that secondment rules might go out the window on 1/1 so are recommending local contracts for seasonal staff (we’re in French Alps) this winter.
For UK tax, if you’re happy she’ll tick the resident box for 20/21, then split year might be an option.
Presumably not a director making management decisions from overseas?

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Replying to accountantccole:
By carnmores
24th Sep 2020 10:18

hi there , are you based in france i have a quick question about french tax returns do you have experience of these?

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By carnmores
24th Sep 2020 10:17

she should come off paye . why pay national insurance? will they not have to pay social security and payroll taxes in the other country? my view is that they will qualify for SYT from the date of departure on the basis of the limited info provided.

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