Non-Residents - Offshore Workers

British Citizens working abroad do not need to pay UK tax on their earnings provided they are deemed to be non-resident in the year and all the duties are performed outside the UK. Determining where someone is resident is complex, it is necessary to look at both the number of days spent in the UK in the tax year and also the average over the previous few years.

There is an extra statutory concession covering the years of entering and leaving the country, when the residence status changes part way through the year. The two parts of the year are then looked at separately under the different rules.

In all other cases there is a liability to UK tax which needs to be considered. This can be on either the amount earned or the amount brought into the UK.

There are other factors to consider, including where the employer is based, whether any of the duties are performed in the UK, and the precise residence position of the employee. There are also different National Insurance provisions, depending on the double taxation treaty in force with the country where the duties are performed.

Offshore oil rig workers are considered to be working abroad unless they are working on oil rigs in territorial waters or in the UK Continental Shelf.

Aircrew and seamen are treated for the most part as working abroad when a journey both starts and finishes outside the UK.

Hornbeam has a long history of preparing tax returns for ex-pats and in particular off-shore workers.

Hornbeam can advise on your residence position, the liability to UK tax of earnings arising worldwide, and of course prepare your UK tax return, as well as provide details of methods of arranging your affairs so that monies brought into the country can be identified as capital rather than income liable to tax.