The extent of the liability to U.K. tax on earnings depends upon residence status in the United Kingdom. Residence is based on case law and depends mainly on the length of time an individual spends (or intends to spend) in the United Kingdom, although it may also be affected by other factors such as whether or not he/she purchases accommodation in the United Kingdom. The Government has proposed to introduce a Statutory Residence Test from April 6, 2013.
The domicile status of the individual can also affect the liability.
The maximum U.K. income tax rate for the tax year ending April 6, 2013 is 50 percent. It is proposed that the maximum tax rate for the tax year ending April 5, 2014 be 45%.
The U.K. tax authority is known as Her Majesty’s Revenue and Customs (HMRC).
The official currency of the United Kingdom is the pound sterling, often referred to just as sterling or as the British pound (GBP). The United Kingdom has a decimal currency system with 100p (pence) making up GBP 1 (one pound).
Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.