How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3371
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

My company is transferring an employee from India on a 5 year

Customer Question

My company is transferring an employee from India on a 5 year visa. The employee says that in similar circumstances for a different employer: "Also, for the first 2 years in the UK, we claimed tax exemptions on any subsistence related payments based on bills submitted to the in-house finance team. These include (house rent + council tax) + any weekday breakfast and lunch bills + any weekday travel charges."
Could this be correct?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Indeed, it could, two years being the maximum period for which subsistence payments for temporary duty can be made. Thereafter, the employee is deemed to have transferred their duty location. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.

Thanks Keith. Are there any limitations/rules around this?

(And would it be 'temporary duties' if they come in on a 3 or 5 year visa?)

Expert:  bigduckontax replied 1 year ago.
The staff are being transferred to the UK as part of their employment; the visa conditions are irrelevant unless. of course, they preclude working as many so do. There are limitations, but this matter is quite complex. The basics can be found here: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim05255 Please be so mind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.

Just one more point. I assume that this would not work if we simply employed someone from India directly in the UK without them first being employed by our Indian subsidiary? That being the case, would they have to work for the Indian subsidiary for a 'qualifying period' before being transferred to get the benefits? Thanks.

Expert:  bigduckontax replied 1 year ago.
Your surmise is correct. A new employee recruited from India would not qualify. The Gov UK guidance is silent on any qualification period. I would tend towards caution here.
Customer: replied 1 year ago.

OK, many thanks.

Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3371
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

I just noticed that your first comment referred to 'subsistence' only. Did you deliberately not say travel? Or is any travel to/from home/workplace allowable?

Expert:  bigduckontax replied 1 year ago.
No, by subsistence I meant travel and subsistence, my omission. Travel between residence to place of work on a daily basis is never allowable unless the individual is on temporary duty away from their normal place of work. An employee can only have one place of work, usually specified in their contract of employment.
Expert:  bigduckontax replied 1 year ago.
Thnk you for your support.
Customer: replied 1 year ago.

So hang on then. I think you are now saying that the following from the original question are in fact NOT allowable: "...any weekday breakfast and lunch bills + any weekday travel charges." Please clarify.

Expert:  bigduckontax replied 1 year ago.
You are transferring an existing employee from India to the UK. For the first two years this can be considered temporary duty, thereafter they are deemed to be permanently transferred for this purpose.
Customer: replied 1 year ago.

So their 'place of work' is India. So for two years any travel and subsistence costs whilst in the UK are reclaimable because anywhere in the UK is regarded as a temporary workplace.

Expert:  bigduckontax replied 1 year ago.
Correct, as he is an existing employee whose original place of employment was India.
Customer: replied 1 year ago.

OK, I get it. Thanks.

Expert:  bigduckontax replied 1 year ago.
Excellengt.
Customer: replied 1 year ago.

HI Keith, I have just read an article (below) where it indicates that 'temporary workplace relief' will not be available if the new workplace was intended to be the same for more than 2 years. Since the employees are transferred on a 5 year visa to the UK, and the UK is regarded as the 'temporary workplace' would this not actually be regarded as 'permanent'?

http://www.payandbenefitsmagazine.co.uk/article/tax-update-expenses-and-temporary-workplaces

Expert:  bigduckontax replied 1 year ago.
Ye, I have looked, but a transfer of an employee from India would definitely trigger a temporary location. The lengtb of the visa is irrelevant.
Expert:  bigduckontax replied 1 year ago.
Additional post to clear my question list.
Customer: replied 1 year ago.

OK, thanks.

Expert:  bigduckontax replied 1 year ago.
I opted out in an attempt to clear my question list!
Expert:  bigduckontax replied 1 year ago.
Nothing seems to be working, sigh.
Customer: replied 1 year ago.

I could rate again if you give me the option?

Expert:  bigduckontax replied 1 year ago.
You have already rated me on your other similar question.
Customer: replied 1 year ago.
OK.
Expert:  bigduckontax replied 1 year ago.
Post to clear my question list.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions