The European Sales Manager of a multi-national company is based
in London. She frequently travels to Milan, Bonn and Paris to meet
clients. Trips normally last for one week. Over a tax year she
spends a total of about 3 months outside of the United Kingdom.
All of the emoluments from this employment are chargeable under Section 15, as the employee is resident and ordinarily resident in the United Kingdom.
A semi-retired employee of a US resident company lives in
London. Although he has lived in the United Kingdom for over 20
years he has retained his US domicile. He maintains a small
portfolio of Swiss clients. He travels to Zurich to see them. All
of the duties of the employment are performed outside the United
The employee is chargeable under Section 22 on chargeable overseas earnings that are remitted to the United Kingdom. The general earnings are overseas earnings due to the residence and domicile status of the employee, the employment with a foreign employer (see EIM40031) and the performance of the duties of the employment wholly outside the United Kingdom. After calculating the amount of chargeable overseas earnings (see EIM40102), those earnings can only be charged under Section 22 to the extent that they are remitted to the United Kingdom (see EIM40302).
A non resident director spends two days each month in the United
Kingdom at the premises of a small family company. She spends the
time reviewing management accounts, discussing progress with team
leaders and attending board meetings. Salary is paid into a Spanish
bank account, the country in which the director resides.
The director is chargeable under Section 27 on general earnings from duties performed in the United Kingdom. General earnings from duties performed in Spain are not liable to United Kingdom income tax, as they do not fall under any of the charging provisions.
When looking at the liability of foreign nationals working in the United Kingdom or United Kingdom residents working abroad it is important to consider the relevant double taxation treaties to determine whether the earnings are chargeable in two states and which state has primary taxing rights. See EIM40601 and subsequent.