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Do these expenses qualify for pre-tax deduction?

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    #11
    Originally posted by engineer123 View Post
    Can I apply the following to claim the air fare to the USA and back to the UK?

    Foreign travel rules: duties performed wholly abroad: employee's initial and terminal journeys
    Based on that link, yes. Claim the airfare as an expense, but nothing else since you were at your permanent place of business.
    Originally posted by MaryPoppins
    I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

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      #12
      Originally posted by DirtyDog View Post
      Based on that link, yes. Claim the airfare as an expense, but nothing else since you were at your permanent place of business.
      How do you get that though? The link clearly states a foreign employer, not a foreign base of a UK employer or does the foreign entity meet the criteria? I didn't think it did.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #13
        Originally posted by northernladuk View Post
        How do you get that though? The link clearly states a foreign employer, not a foreign base of a UK employer or does the foreign entity meet the criteria? I didn't think it did.
        I was reporting to the US branch and not on the PAYE system of the UK employer. I was given a P45 when I left the UK office. I was paid in US Dollars and all taxes were deducted in the same way as that of a local employee. So technically I was working for the foreign employer.

        One of the requirements is the employee should be domiciled in the UK. I have an ILR. Based on this, can I choose UK as domicile of choice?

        I understand to claim expenses related to rented accomodation and houshold expenses, the US office should be a temporary workplace so that 24 month rule can be applied. My offer letter didn't specify a fixed term which makes the expected duration uncertain. Although in order to retain my ILR, I cannot be absent from the UK for more than 24 months. So my intention was to return back within 24 months. Any advice?
        Last edited by engineer123; 31 October 2013, 10:45.

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          #14
          Originally posted by engineer123 View Post
          I was reporting to the US branch and not on the PAYE system of the UK employer. I was given a P45 when I left the UK office. I was paid in US Dollars and all taxes were deducted in the same way as that of a local employee. So technically I was working for the foreign employer.

          One of the requirements is the employee should be domiciled in the UK. I have an ILR and spouse is British. Based on this, can I choose UK as domicile of choice?
          Dunno.

          I understand to claim expenses related to rented accomodation and houshold expenses, the US office should be a temporary workplace so that 24 month rule can be applied. My offer letter didn't specify a fixed term which makes the expected duration uncertain. Although in order to retain my ILR, I cannot be absent from the UK for more than 24 months. So my intention was to return back within 24 months. Any advice?
          I still don't personally agree the US job was temporary. It was your one and only employment and you had no end date on your employment so can't see how you can argue that the place you worked isn't permanent. In my mind whether it is next door or in the US you have one job with one location to work, that makes it permanent.

          I think it is time for an accountant, the fact you got paid in US dollars, your ILR and everything is making this very complicated. I wouldn't think many people put this on their SA so it will shine like a beacon when you put it in so would say you have to get this right or run a high risk of it being looked at. Really not sure how they will take it when you are claiming tax relief against a US taxed job.

          I am surprised non of our resident accountants have answered but either way time to get a professional opinion IMO.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #15
            Originally posted by northernladuk View Post
            I still don't personally agree the US job was temporary. It was your one and only employment and you had no end date on your employment so can't see how you can argue that the place you worked isn't permanent. In my mind whether it is next door or in the US you have one job with one location to work, that makes it permanent.
            I agree

            Originally posted by northernladuk View Post
            I am surprised non of our resident accountants have answered but either way time to get a professional opinion IMO.
            Clare is on holiday
            Originally posted by MaryPoppins
            I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

            Comment

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