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Introduction

There are some differences in the tax and NIC treatment for employees who only work overseas for a short period, compared with those who go overseas on a substantial assignment or permanently.

Income tax

An individual on a temporary work assignment overseas might be UK resident or not. This will depend on the facts as determined by the statutory residence test (SRT) (see the Statutory residence test guidance note for details of the SRT). In this context, the determinant is likely to be the length of the period overseas. An employee moving away from the UK to take up permanent full-time employment overseas is likely to become non-resident. See the Foreign employment guidance note.

Even though the overseas placement might be temporary, it is feasible that there would be a tax liability imposed by the foreign jurisdiction. The position should be checked against the relevant double tax treaty. Mostly, these have a 183-day rule before residency is imposed. There could be a clause that exempts tax liability in the host country, particularly where the employee