Bonus paid after leaving the UK with regards to work done in the UK

Hi I have a question regarding the following situation: An employee works during 1st Jan 2024 to 31 Dec 2024 in the UK as a UK-resident (been a UK resident for 7+ years before that as well) and leaves the UK on 1st Jan 2025 to live in Dubai permanently (ie becoming a Dubai tax resident) for the local legal entity of the same group (ie his previous contract is ended and a new one starts where the employer becomes the local legal entity). That employee then receives in Feb 2025 a cash bonus for the work he produced during the calendar year 2024. What should be the taxation treatment of that cash bonus received in Feb 2025 ? 1- should that bonus be entirely taxed in the UK given it refers to a period of work done in the UK ? 2- should that bonus be exempt of UK taxation altogether given it was paid while the employee was a Dubai tax resident? 3- how would the split-year treatment apply in this situation ? 4- would a prorata mechanism apply (ie part of the bonus taxed in the UK and the other part in Dubai) ? If so, is it based on the calendar year 2024 (in which case 100% of the cash bonus should be taxed in the UK) or based on the tax year (ie from 6th April 2024 to 31 Dec 2024 taxed in the UK prorata and from 1st Jan 2025 to payment date taxed in Dubai) ? Thanks in advance for your answers/help.

Hi nany0017,
If you have not received notification that this invidual should be exempt from paying tax on earnings in the UK then they would still be liable to paying tax in the UK.
Please see:
2024 to 2025: Employer further guide to PAYE and National Insurance contributions 
Sections 4.6.4 refers. 
For information on when an employee leaves the UK.
Thank you. 

Hi Thanks for your answer. I understand from your answer that the employee would still need to pay UK tax on that bonus, but what portion of it would be taxed in the UK ? If the employee leaves the UK on 31st december 2024, would it be taxed prorata based on Tax Year ie from 6th April 2024 to 31 Dec 2024 (ie 270 days out of 365 days) ? Or would it be taxed *entirely* in the UK given it was paid for the work done during calendar year 2024 that was spent entirely in the UK ? Thanks

Hi,

It would be taxed entirely in the UK.

Thank you.