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Posted Thu, 24 Jun 2021 10:56:25 GMT by Mervyn Northam
I have been non-resident for tax purposes for 11 years and was made redundant from my overseas employment in the 20/21 tax year. I am claiming split year treatment under case 4 since my overseas residence ceased upon redundancy. On the date that my redundancy was triggered, I was entitled to a number of payments; pay to the last date of working, pay in lieu of notice, end-of-service payment and a redundancy payment. As these were all due on the last day of the overseas period of the split year, are they all not subject to UK tax, notwithstanding that they were actually received in the month that followed? If they are not subject to UK tax, does that mean that I do not have to enter them to my tax return?
Posted Mon, 28 Jun 2021 08:07:36 GMT by HMRC Admin 9
Hi, 

If you are claiming split year, then you only report income subject to tax in the UK part of the year. In general terms, income is declared when it is received therefore meaning you would report employment from abroad if it is paid in the UK part of the year, despite it being due for an earlier period.

Please see further guidance regarding employent income and residency:

EIM40001 - The scope of the charge to tax on general earnings

RDRM10245 - Residence: Coming to the United Kingdom

Thank you. 

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