Advice on tax implications for flights back to the UK when working abroad

Biddy

Hello

I wonder if anyone could give me some advice.

If you are working overseas and your company pays for you to come back to the UK, are these travel costs taxable?

Thanks for any advice - my company are not being very helpful!

Cook_County

Possibly...is it every weekend? Are you UK tax resident? What country are you in and what are the rules there?

Biddy

No not every weekend - probably will average once a month over a 12 month period. I am living in Switzerland and am still a UK resident for tax purposes.

Any pointers appreciated!

John_Pierpoint

Any chance of that country, to which HMRC has outsourced the collection of tax for UK residents, buying the tickets as part of the deal for tapping into your expertise?

Your situation is similar to a seaman being sent to join his ship, wherever it happens to be in the world, but I bet the tax man does not see it that way.

My experience of [STRIKE]commuting[/STRIKE] travelling to and from Switzerland was back in the 1970's. In those days IATA ruled the roost and their tickets were a sort of alternative currency, priced on a basket of currencies including gold. The IATA price was about 180 GBP [but there was a bucket shop daily flight to Geneva operated by British Caledonian at about 33% of that price, if one did not mind sharing with other passengers in bobble hats:D ]
As far as the Swiss were concerned, I was a cross between an economic migrant and an illegal immigrant. But it is a very pragmatic country. You are lucky to be allowed to live there legally.?!?

The real benefit was a set of rules that allowed the overseas worker, who was propping up a near bankrupt country ("sick man of Europe"), to claim 25% of his salary tax free.

I seem to remember a similar question about 6 months ago, from someone who was working in Norway; searching this part of the forum using the site's search tool, or searching the whole site using Google might locate a similar previous question.

This part of the tax man's manual looks like it could be fertile ground for checking the present rules:

http://www.hmrc.gov.uk/manuals/eimanual/EIM34001.htm

jimmo

As a general principle, if the employer pays for the travel or reimburses you, you will not be taxable in respect of those costs.
However, if you pay for the travel yourself you will not be able to claim tax relief.
http://www.hmrc.gov.uk/manuals/eimanual/EIM34025.htm

Biddy

Thanks for both replies - very useful...