New FIG Arrangement and Oversea Employment

Hello, I would like to ask about the new Foreign Income and Gains (FIG) regime for overseas employment. I will become a tax resident in June 2025 and will need to report and complete a self-assessment for the tax year 2025-2026. However, I will still have overseas employment during the tax year 2025 and will need to pay pension, National Insurance (NI), or tax directly in my home country. I understand that NI should be registered and contributed by the employee directly. Under the new FIG regime, should my overseas employment income be subject to UK tax based on the UK income rate through self-assessment? Thank you.

Hi,
You will need to review the guidance on statutory residence at:
RDR3 Statutory Residence Test and take the statutory residence tests.  
If you are tax non-resident for the whole tax year, you are taxable in the UK only on your UK income.  
If you are tax resident for the whole tax year, you will need to determine if split year treatment applies, as this will determine when your world-wide foreign income becomes taxable in the UK.  
In all cases, a self assessment tax return is required.
Thankyou.

Thank you for the information and I have read the new arrangement on the FIG updated at the HMRC manual. The case I want to clarify is about the oversea employment. I am not sure should the above case related to the "Globally mobile employees: Overseas Workday Relief" mentioned at https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig45100 for the “foreign specific employment income” or not. Let me recap the information: Employee: 1. To be tax resident at June 2025 2. Based on the SRT, I can enjoy FIG for the upcoming 4 years 3. Have oversea employment start at May 2025. 4. Perform the job at UK home locally but remote the oversea computer and phone directly via network Employer: 1. Oversea company with no UK presence and relationship. 2. No UK business will be involved in. 3. Employment contract is fully fulfilled the oversea country standard and employment law and doesn’t have any linkage or relationship for the UK employment law. 4. Required to pay the oversea pension, fulfil the minimum wages, annual leave / bank holiday based on the oversea country. 5. Employment income will be paid to the employee oversea account with using local currency directly (aka, non GBP and non-UK bank) 6. Employment contract is signed in oversea and by using the oversea ID and address. Under the old remittance basis, seems I am “Domiciled outside UK” with “Resident And Not Ordinarily Resident” and “employer is non-UK/foreign resident”, so the income is counting as “Liable on remittance”. I would like to know more about the arrangement for the above case based on the FIG. Please correct me if I wrong. And about the NI, I believe I should register the PAYE based on the PAYE20100 no matter what income tax arrangements on FIG / remittance basis. Thank You.

Hi,
We can only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310 or seek professional advice.
Thank you.

Dear HMRC, Thank you for the guildline to help me having more detail from HMRC, For the general information / guidance, I would like to know any documents / internal manual related to the FIG oversea employment, and remote work employment? Thank You

Hi Victor Yu,
Please see the guidance at:  RFIG41000 - FIG regime: Introduction
Thank you.

Dear HMRC, Thank you for the information. I have readed the above document and find the information related to "Oversea employment" is the new Overseas Workday Relief (OWR) - EIM43550 (https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim43550). I would like to confirm for the original remittance basis which localed at RDR1 (https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1) section 6.62 (scope of liability of income to UK tax). Is it still available under the new FIG policy? If not, is it I need to check with new OWR (EIM43550) arrangement? Thank You

Hi Victor,
The new rules apply from 6 April 2025.
For the current tax year you would need to use the new guidance at:
EIM43555 - Globally mobile employees: Overseas Workday Relief: overview.
Thank you.