Q&A: overseas workday relief and income tax

In this week’s Q&A, Croner-i tax advisory lead Stephen Fletcher CTA explains new tax rules when employee works overseas but returns to UK at weekends

I have a client who will become UK tax resident in 2025/26 as he has relocated back to the UK with his family after 20 years overseas and will be unable to satisfy any of the tests to be non-UK resident.

He will work in Switzerland throughout the week and travel home at weekends. Would such foreign earned employment income, for work performed part in the UK and partly outside the UK, be exempt from UK tax?

We will need to consider whether your client is eligible for what is commonly referred to as overseas workday relief (OWR). There have been changes to this area from 6 April 2025, which will be beneficial to your client.

The old rules

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