Sorry if that was not a bit clearer but yes he will receive twice the amount his shares should attract. I don't feel able to answer your second point for reasons of confidentiality - the wording is pretty close to what I have set out.
As of yesterday (8 April) HMRC are now saying "Businesses and agents that are authorised to act on behalf of clients for PAYE matters will be able to claim".
We've ask the clients to tell us if they have worked more than 3 hours in a day and if about that amount we treat that as a half day and (obviously) 7 hours plus as a full day.
The way we have always worked on this is to apply a "just and reasonable basis" which in your example would be 70/232. In other the OWR should be a relevant percentage of his total workdays for a year.
Thanks for your response. The client has advised us he was on a visa that allowed him to work from the US handling US business. I know nothing about US visas but he was on this basis for 2 years and then came off the UK payroll (P45 etc) and was then transferred to the company's US payroll. He only paid UK tax until part way through 2015 and only US tax from then onwards. It seems that US Returns were not submitted for 2013 and 2014 through ignorance (he thought it a temporary situation and was paying UK anyway). He is returning to the UK shortly.
So if the client was travelling to the US and on a 8 hour flight leaving the UK at 12 noon would you treat that as an overseas workday and the return trip?
I take your point that there is no hard and fast rule and provided it is calculated on a just and reasonable basis HMRC should accept it.
The salary is paid by a UK employer and they have obtained clearance from HMRC to not tax a certain percentage as the client estimated his work abroad at the outset of the tax year (I am now having to complete a 2014/15 Return with the actual figures).
Thanks for your reply. Yes as you say I need to apportion someone's earnings between duties in the UK and outside the UK for OWR. I am assuming I calculate the total workdays for a year excluding weekends, bank holidays etc and apportion those accordingly but what about travel days in and out of the UK and half days? It seems very odd to me that there is no HMRC guidance.
My answers
Thanks to all for responses.
Thanks. The purchaser of the company knows nothing about this arrangement; it's between our client and his employing company if that helps.
Sorry if that was not a bit clearer but yes he will receive twice the amount his shares should attract. I don't feel able to answer your second point for reasons of confidentiality - the wording is pretty close to what I have set out.
As of yesterday (8 April) HMRC are now saying "Businesses and agents that are authorised to act on behalf of clients for PAYE matters will be able to claim".
We've ask the clients to tell us if they have worked more than 3 hours in a day and if about that amount we treat that as a half day and (obviously) 7 hours plus as a full day.
The way we have always worked on this is to apply a "just and reasonable basis" which in your example would be 70/232. In other the OWR should be a relevant percentage of his total workdays for a year.
HMRC have agreed with our interpretation.
Thanks for the comments. I hope I'm not the only tax practitioner who has a sudden doubt on something at this time of year when I really shouldn't!
Thanks again.
Thanks for your response. The client has advised us he was on a visa that allowed him to work from the US handling US business. I know nothing about US visas but he was on this basis for 2 years and then came off the UK payroll (P45 etc) and was then transferred to the company's US payroll. He only paid UK tax until part way through 2015 and only US tax from then onwards. It seems that US Returns were not submitted for 2013 and 2014 through ignorance (he thought it a temporary situation and was paying UK anyway). He is returning to the UK shortly.
So if the client was travelling to the US and on a 8 hour flight leaving the UK at 12 noon would you treat that as an overseas workday and the return trip?
I take your point that there is no hard and fast rule and provided it is calculated on a just and reasonable basis HMRC should accept it.
The salary is paid by a UK employer and they have obtained clearance from HMRC to not tax a certain percentage as the client estimated his work abroad at the outset of the tax year (I am now having to complete a 2014/15 Return with the actual figures).
Thanks again.
Thanks for your reply. Yes as you say I need to apportion someone's earnings between duties in the UK and outside the UK for OWR. I am assuming I calculate the total workdays for a year excluding weekends, bank holidays etc and apportion those accordingly but what about travel days in and out of the UK and half days? It seems very odd to me that there is no HMRC guidance.