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HMRC internal manual

Employment Income Manual

Special rules for employees travelling to work outside the United Kingdom: introduction

Sections 341 to 342 and Part 5 Chapter 5 ITEPA 2003

Factors to consider

Deductions available under the special rules vary considerably depending on the following factors:

  • the residence status of the employee
  • whether the employee performs all or part of the employment duties outside the UK and
  • whether the expense is met or reimbursed by the employer and
  • whether the employee satisfies the conditions relevant to each expense.


The rules contain the following terms relating to the residence status of the employee in the United Kingdom. They are used in this guidance. It is important to understand what they mean.

You may need to look up the definitions at the references given below, but in very general terms the meanings are as follows:

resident - an employee is resident in the United Kingdom if he or she is physically present here on a regular or frequent basis

domiciled - an employee is domiciled in the UK if the UK is his or her permanent home

merely incidental duties of the employment that are trivial or subordinate to the substantive core duties may be disregarded when deciding whether an employment is carried on wholly outside the United Kingdom.

The United Kingdom is England, Wales, Scotland, Northern Ireland, the territorial seas extending to the 12 mile limit from the shoreline and airspace over that land and sea.

Further guidance may be found at the references listed below:

EIM42802 resident
EIM42802 ordinarily resident
EIM42804 domiciled
EIM40203 merely incidental duties
EIM40032 the United Kingdom.