UK Work Secondment Tax Rebates
This section applies if you came to work in Britain from abroad because of a Work Secondment. If this is your case, you may be due a large tax refund.
Who can qualify for a UK Secondment tax rebate?
Work secondments can apply to a wide range of professions. However, we generally find that researchers, scientists and IT professionals are the most prone to come under the scope of work secondments.
Often overseas employers may request from their employees that they relocate temporarily to the UK subsidiary of their company for a period of 6 to 24 months.
If you come on a workplace secondment in the UK, you would normally be paid in GBP whilst in the UK and pay income tax under PAYE (Pay As You Earn scheme), like any other UK employee. As a result, you could be owed hundreds of pounds once your secondment comes to an end.
All Secondees MUST submit a tax return.
Unsubmitted or late tax returns penalties will incur penalties from HMRC, worth up to £1,600 per tax year.
What are the requirements you must meet?
If you come into the UK on a Tier 2 (ICT) visa from a multinational corporation, you may be entitled to claim tax back for the year in which you leave.
You may also be able to claim for some of the living expenses whilst in the UK.
What will we need to process your claim?
- A P60 is a form that shows how much taxable income the employee was paid in the tax year and how much tax was deducted from their wages. An employer must give a P60 to each of their employees at the end of the tax year.
- A P11D Is a statutory form required by HMRC from UK based employers detailing the cash equivalents of benefits and expenses that they have provided during the tax year to their directors, and employees.
- Statements are documents that summarize financial activity i.e. receipts, invoices etc.
- A Secondment / Deputation Agreement is a document showing the assignment of a person from their regular organization to a temporary placement elsewhere.
What Work-Related Expenses Can You Claim?
- Travel to one or more temporary workplaces can be included and as such certain travel and, by extension, subsistence costs will also be eligible on your claim, this applies for employees who are on secondment.
- It may be possible to claim tax relief on your accommodation costs if you are on secondment.
- Utility bills such as gas, electricity, telephone, broadband and water rates may be claimable in full or in part depending on your circumstances, we can advise you on your specific situation.
- Great news for you if you are on secondment. Council tax costs can mount up over a year and there’s a good chance you could be eligible to claim tax relief on this.
REQUEST A FREE SECONDMENT TAX REBATE CLAIM
Simply fill in your details below and we’ll contact you back to assess your case, free of charge and in all confidentiality. You will also get the chance to download our FREE secondment tax rebate claim pack to get you started straight away.
I contacted the Tax Refund Pro for filling the tax return/refunds on my behalf for the tax I paid while working in UK. Tax Refund Pro provided great support and could file the tax return efficiently. They are professional and were cooperative at all levels to get the overpaid tax refund! I will rate them for their service 5 out of 5 stars – Dr Yatendra Chaudhary
Case study – Sanjay was seconded to work in the UK from India for a period of 17 months, between April 2011 and September 2012. Whilst in the UK, Sanjay was remunerated in GBP under the Pay As You Earn (PAYE) scheme and income tax was deducted at source from his wages. Thanks to our knowledge and expertise, Sanjay was able to receive £3,612 in tax refunds.
UK Work Secondment Tax Rebate: Our Fees
Our chargeable rate is 20%* of the tax refund value, subject to a minimum fee of £180*, per tax year**. We’ll only charge one set of fees, whichever is the higher.
* VAT at 20% will be added if you reside in a country which is part of the European Union.
** The UK tax year runs from April 6 until the following April 5**.
Tier 2 ICT – Visa Types
Tier 2 Long Term Visa – This visa is for transfers of more than 12 months into a role that can’t be filled by a new UK recruit. You need to have worked for your employer overseas for at least 12 months.
Tier 2 Short Term – This visa is for transfers up to and including 12 months into a role that can’t be filled by a new UK recruit. You need to have worked for your employer overseas for at least 12 months.
Tier 2 Graduate Trainee Visa – This visa is for transfers into graduate trainee programmes for specialist roles. You need to be a recent graduate with at least 3 months’ experience with your employer overseas.
Tier 2 Skills Transfer Visa – This visa is for transfers that allow people to gain skills and knowledge needed to perform their role overseas, or to pass on their skills to UK colleagues. You don’t need to have been with your employer overseas for a set period.
Rules & Guidelines
Section 336 ITEPA 2003 – The employee is entitled to a deduction from earnings for an expense if he can satisfy all the following tests:
- The expense must actually be incurred and paid by the employee.
- The employee must be obliged to incur and pay it as the holder of the employment.
- The amount must be wholly, exclusively and necessarily incurred in the performance of the duties of the employment.
Only if all of the elements, of these tests, are met is a tax deduction granted.
A workplace which may appear to be a temporary workplace will not be a temporary workplace, where the employee attends it in the course of a period of continuous work that lasts, or is likely to last more than 24 months. This is found at ITEPA 2003 s 339 (5).