Overseas business expenses

Produced by Tolley in association with

Employment Tax

Guidance

STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Introduction

There are special rules for employees who perform their duties overseas and also for employees who come from overseas to work in the UK. The rules relating to overseas business expenses have a number of specific tests.

This guidance note relates to the expenses of those individuals, not their residency status for tax purposes which may also need to be considered. For more about these aspects of the employee’s tax status, please refer to the Residence and domicile ― effect on tax liability guidance note.

This guidance note addresses the tax and NIC treatment available when UK-based employees travel overseas on business. For the additional reliefs that may apply

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Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties. Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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