SE40204 - Schedule E Cases I and II: "merely incidental" duties: examples

Section 132(2) ICTA 1988

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 performs in the United Kingdom should be regarded as “merely incidental”. If the employee is Not Ordinarily Resident the duties may be disregarded and the emoluments arising from them not charged under Case II of Schedule E. A charge may arise under Case III if the emoluments are remitted here (see SE40301).

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”.