Taxation (International and Other Provisions) Act 2010 Schedule 7 Part 2

Relocation of section 24 of FA 1974 (paragraphs 11–16)

Schedule 7 Part 2 deals with the relocation of rules about obtaining information on the foreign earnings of individuals who work in the UK for non-resident employers but whose services benefit UK-based clients.

• Employees of non-UK-resident employers who work in the UK for 30 or more continuous days for the benefit of a UK client can be required to report their general earnings in their personal tax return.
• Three conditions must all be met: the individual performs duties in the UK for a continuous period of at least 30 days; the employer is resident outside the UK; and the duties are performed for the benefit of a UK-resident person or someone carrying on a UK trade, profession or vocation.
• The UK client for whose benefit the work is done can be treated as the employer for the purpose of being required to provide HMRC with the names and places of residence of such employees — but only if HMRC first issues a notice requesting that information.
• These provisions were previously contained in section 24 of the Finance Act 1974, which is now repealed; the rules have been relocated into the Taxes Management Act 1970 without any change in substance.

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