I'm relocating to London for Meta. I heard there is a tax advantage called Overseas workday relief, with which you don't pay UK income tax on days you work remotely from others countries. But you need to setup an account offshore like in Jersey. Do you know how to do this. Which bank? HSBC? Is it possible to open before I arrive in the UK?
That applies only for <= 2 yr assignments and not if you are permanently moving, I have used that tax benefit, dm me
My apologies, mixed up Detached Duty Relief (DDR) and Overseas Workday Relief (OWR). OWR should apply to you for times when you work outside of UK.
Yes
Does workday relief only apply if it was a company assignment overseas. Or does it also apply if say every few months spend a couple weeks working remotely from home country without the employer explicitly asking for that?
https://www.gov.uk/government/publications/rdr4-overseas-workday-relief-owr/overseas-workday-relief-rdr4 This link has all the details. Remote work should count for relief but not vacation. Also, only applies if you choose remittance basis for taxes and don’t bring the tax exempt money into UK. Lastly, the most important condition is that applies only for the first 3 tax years after you arrive in UK and you are not a citizen/PR
I'm adding a question, the RSU should also go to offshore broker. Any recommendations for the broker?
I think it will already go to an American stock brokerage (Meta folks can confirm). When you decide to sell the stocks and move the proceeds to your bank account, if it’s a non-UK account (by non UK I mean in another country, not even Isle of man, Jersey,…etc) you won’t be taxed on the capital gains in the UK unless you bring that money into the UK (which is called remittance IIRC). That’s the advise I got from accounting firm.
Meta uses Charles Schwab for rsu which means it's outside of the UK. For salary and bonus, you can open an HSBC expat account which uses same bank address format as the UK, so your salary will deposited to jersey. There is an official 20 global days that you can use to work outside of the UK. But you can go above that depends on your manager. Also you can do work trips to USA which also counts as overseas work
Thank you for your very informative reply! :) I'm in the process with HSBC to open 2 accounts (UK and Jersey) but the Jersey one seems difficult, I fill form A, then person B says contact person C, person C says fill form A.
Are we supposed to file tax returns for that income only in the country where we worked? Or can it be filed in Jersey?
It would be good to know if Meta will pay your salary into a non-UK bank account.
From what I heard yes, because Jersey is in the UK banking system