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From 6 January 2024, the main rate of class 1 National Insurance contributions (NIC) deducted from employees’ wages is reduced from 12% to 10%. From 6 April 2024, the main rate of self-employed class 4 NIC will reduce from 9% to 8% and class 2 NIC will no longer be due. Those with profits below £6,725 a year can continue to pay class 2 NIC to keep their entitlement to certain state benefits. Our guidance will be updated in full in spring 2024.

Updated on 6 April 2023

Overseas workday relief

Overseas workday relief can reduce your UK tax liability in certain circumstances where you work overseas.

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If you are non-UK domiciled and coming to work in the UK and have not been resident in the UK for any of the three previous consecutive UK tax years, you may be able to claim tax relief for earnings relating to your overseas workdays in your first three tax years of UK residence.

This relief is available for taxpayers who claim the remittance basis of taxation and where the earnings relating to their overseas workdays are paid and retained overseas. Such earnings are then taxable in the UK only to the extent they are remitted to the UK.

There are specific conditions that must be met in order for the relief to apply and we would strongly advise you to read HMRC’s guidance if you wish to claim this relief and seek professional advice.

In particular, you should be aware that the rules regarding what is deemed to be remitted to the UK from a bank account containing more than one type of income are complex. There are simplified rules available if you set up a ‘qualifying account’ in advance of receiving your first salary payment.

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