United Kingdom – Amended Legislation to Prevent Tax Avoidance Using Dual Contracts

United Kingdom – Amended Legislation to Prevent T...

The U.K. Finance Bill 2014, published today, includes provisions aimed at preventing the avoidance of income tax by a small number of non-U.K. domiciled individuals who work under arrangements commonly known as “dual contracts.” The new legislation brings the offshore contract into charge in the U.K. when certain conditions are met. Employers and U.K. resident but non-U.K. domiciled employees who have more than one employment (an employment for this purposes includes a directorship) should check whether they are caught by these new rules which will be introduced from April 6, 2014. Employers will also need to consider whether they are required to withhold tax and/or social security on the earnings under the offshore contract.

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