SE35055 - Travelling expenses: employees working but not domiciled in the United Kingdom - travelling expenses of the employee’s family - the "60 days rule" - examples

Examples of application of the "60 days rule" in Section 195(6) ICTA 1988 - SE35050

Example 1A

Anita has been sent to the UK to work for 12 months as a project manager based at the European Headquarters of a multi national corporation. Her family accompanies her at the start of her assignment. During the first 60 days of her assignment, she spends 20 days working at her UK office and 10 days working outside the UK. Anita will be entitled to a deduction for the travelling expenses of her family. She has spent two thirds or more of her working days during a 60 day period in the UK.

Example 1B

The facts are the same as in Example 1A except that during the first 60 days of her assignment, Anita spent 10 days working at her UK office and 20 days working outside the UK.

Anita does not satisfy the 60 day rule at the 60 day point. However, if she spent her next 30 working days in the UK, she would be entitled to a deduction for the travelling expenses of her family as she would have spent more than two thirds of her working days in the UK during a period of 60 days or more.

Example 2

Jack was sent to the UK to work for the UK subsidiary of a US finance house in January 2000. He is required to travel extensively outside the UK on business.

His employer pays the travelling expenses of his family who arrive in the UK to visit him for two weeks on 1 July 2000. At that time, Jack had just returned from a five day business trip to the Far East on 30 June and was later recalled to the US on business for three days arriving back in the UK on 29 July. Between 1 June and 30 July, Jack worked on 30 days of which 21 were spent working in the UK.

Jack will be entitled to a deduction because his family visited him during a period of 60 days when two thirds or more of his working days were days spent working in the UK.

Example 3

Sonia is sent by her French employer to work in the UK to oversee the installation and testing of a new computer system at its UK subsidiary. She arrives in the UK on 1 May 2001. She completes her UK assignment on 15 June having spent 24 out of 33 working days in the UK. Sonia then stays on in the UK to visit friends and doesn’t leave until 10 July.

Her employer pays the travelling expenses of her husband who arrives in the UK to join her on 10 June.

Sonia would not be entitled to a deduction for her husband’s travelling expenses. The period when she is in the UK for the purpose of performing her duties is only 46 days i.e. 1 May - 15 June so the 60 day rule cannot be satisfied.