UK Income Tax Reliefs ‘For the Class of 2013’

If you have recently started a new role with a UK employer following completion of your under graduate, and/or post graduate studies you will probably be aware that you will be subject to UK income tax on your employment earnings. These are usually deducted from your salary. You will be pleased to hear there are planning opportunities available which could reduce your UK tax exposure on your earnings as follows:

Tax Relief for Overseas Workdays

If you are non-UK domiciled and have not been resident in the UK for the previous three tax years (note that a UK tax year ends on 5 April as opposed to the calendar year) you can make an election to be taxed on your UK source earnings only. In doing so, your workdays performed overseas could be exempted from UK tax provided specific criteria are met.

This claim can only be made for the first three UK tax years that you are considered tax resident in the UK but is particularly useful if you anticipate spending a significant amount of time working overseas (including participation at overseas training events).

Employer Reimbursements of MBA Tuition Fees

If your employer has reimbursed all/part of your MBA study costs, provided specific criteria are met, there could be scope to make a claim to refund the UK tax that was withheld when the payment was made to you via your employers payroll.

We have experience of helping expatriate and non-UK domiciled individuals in making both applications outlined above. If you think one and/or both of the above circumstances apply to you and would like to know more please contact us.