EIM40204 - Employee resident, ordinarily resident or domiciled outside the United Kingdom: location of duties: "merely incidental" duties: examples

Section 39 ITEPA 2003

The following examples illustrate how particular situations should be treated.

Example 1

An overseas marketing executive of a United Kingdom employer spends the majority of each year working overseas. Visits to the United Kingdom total less than three months in a year. While in the United Kingdom the representative carries out the following duties:

• reports on trade conditions and results in the territory
• establishes questions of policy
• receives instructions
• collects samples in preparation for the next tour.

The duties performed in the United Kingdom should be regarded as "merely incidental". If the employee is not ordinarily resident the duties may be disregarded and the general earnings arising from them not charged under Section 25. A charge may arise under Section 26 if the earnings are remitted here (see EIM40301).

Example 2

An overseas employee visits the United Kingdom for periods of training which do not exceed three months in the year. If no productive work is carried out while in the United Kingdom, the duties performed here are regarded as "merely incidental".

Example 3

The director of a limited company usually works abroad, but attends directors' meetings in the United Kingdom. That activity is basic to the joint duty of a board of directors to manage the company and therefore cannot be "merely incidental" to work done overseas.

Example 4

A courier for a tour operator visits many countries in the course of the employment. Visits to the United Kingdom, however few and however short, are of the same importance to the job as visits to other countries and therefore cannot be "merely incidental".