Darren Oswick
Darren Oswick is Head of Tax at Simmons & Simmons LLP. He advises on a wide range of corporate tax and VAT issues, with a focus on private equity and employment tax related matters. He has extensive experience in the corporate and individual tax issues which arise in such areas.
Practice Area
Panel
- Contributing Author
2 Contributions by Darren Oswick
PRACTICE NOTES
Dual contracts for UK-resident non-domiciled individuals: remittance basis, HMRC guidance (2005-2012), and ITEPA 2003 s 24A (FA 2014) anti-avoidance conditions and practical viability
ARCHIVED : This Practice Note has been archived and is not maintained.
A longstanding feature of the UK rules on employment income taxation has traditionally, over many years, been to grant certain tax advantages to employees who are UK resident but not UK domiciled, where they are able to organise their employment arrangements in a particular, structured manner. An individual who is both UK resident and UK domiciled for tax purposes is liable to UK tax on all worldwide income under UK domestic law. This holds irrespective of who employs them and where their employment duties are performed. By contrast, a UK-resident but non-UK-domiciled employee who claims the remittance basis for the tax year in question will be taxed on ‘chargeable overseas earnings’ for that year only to the extent those earnings are remitted to the UK. For background details on the meaning of domicile and the remittance basis, see: Domicile and remittance subtopic.
Earnings from employment will constitute ‘overseas earnings’ if:
the remittance basis applies to that employee for the year in question
the employee does not satisfy the requirement in section 26A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) for
...
Tax
PRACTICE NOTES
UK cross-border employment tax: PAYE obligations, treaty relief, STBVs, secondments, overseas workday relief, tax equalisation, and corporate residence/PE risks for UK and non-UK employers
STOP PRESS: Abolition of non-dom regime and remittance basis of taxation from 2025–26
From 6 April 2025, the Finance Act 2025 abolishes the remittance basis of taxation, replacing it with a regime centred on residence. The reforms introduce a new Foreign Income and Gains (FIG) regime and adjust overseas workday relief. For more on these updates, see Practice Note: The abolition of the remittance basis of taxation from 2025–26.
As employees become increasingly globally mobile, employers may frequently need to navigate and comply with multiple legislative obligations across various jurisdictions. The taxation of an employee’s earnings is a key concern for both employer and employee and should be fully analysed and understood before any cross-border employment begins. Accordingly, this Practice Note highlights the main UK employment tax issues that may arise when:
non-UK entities employ UK-based individuals
UK entities employ non-UK individuals in the UK
UK entities’ UK employees perform duties outside the UK
This Practice Note also briefly outlines tax equalisation agreements. In summary, an employee may fall within UK income tax under domestic law either if they are resident in the UK or if...
Tax
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