Non ordinarily resident ermployees
HMRC have replaced an old Statement of Practice (SP 5/84) following the changes to the remittance basis of taxation in Finance Act 2008. The new SP sets out how HMRC will treat transfers from an offshore bank account which holds the income or gains relating to the employment income of taxpayers who are resident but not ordinarily resident in the UK.
In addition the new SP contains the rules for apportionment of earnings for a non-ordinarily resident taxpayer taxed on the remittance basis. These rules explain how earnings will be split when employment duties are performed both inside and outside the UK.