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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Travelling expenses: employees working but not domiciled in the United Kingdom: travelling expenses of the employee's family: the 60 days rule: examples

See EIM35050 for background information on Section 374 ITEPA 2003 and the 60 days rule.

Example 1A

An employee was sent to the United Kingdom to work for 12 months as a project manager based at the European headquarters of a multi-national corporation. Her family accompanied her at the start of her assignment. During the first 60 days of her assignment, she spent 20 days working at her office in the United Kingdom and 10 days working outside the United Kingdom. Provided the other conditions are satisfied, she will be entitled to a deduction under Section 374 for the travelling expenses of her family. This is because she spent:

  • two thirds or more of her working days in the United Kingdom during a period of at least 60 days and
  • she was present in the United Kingdom for the purpose of performing the duties of her employment both at the start and at the end of that period.

Example 1B

The facts are the same as in example 1A except that during the first 60 days of her assignment, the employee spent 10 days working at her office in the United Kingdom and 20 days working outside the United Kingdom.

She does not satisfy the 60 days rule at the 60 day point. However, if she spent her next 30 working days in the United Kingdom, she would then become entitled to a deduction for the travelling expenses of her family. This is because she would have spent:

  • two thirds or more of her working days in the United Kingdom during a period of at least 60 days and
  • she was present in the United Kingdom for the purpose of performing the duties of her employment both at the start and at the end of that period.

Example 2

An employee was sent to the United Kingdom to work for the United Kingdom subsidiary of a US finance house in January 2004. He was required to travel extensively outside the United Kingdom on business.

His employer paid the travelling expenses of his family who arrived in the United Kingdom to visit him for two weeks on 1 July 2004. At that time, he had just returned from a five day business trip to the Far East on 30 June and was later recalled to the US on business for three days arriving back in the United Kingdom on 29 July. Between 1 June and 30 July, he worked on 30 days, of which 21 were spent working in the United Kingdom.

Provided the other conditions are satisfied, he will be entitled to a deduction under Section 374 because his family visited him during a period of at least 60 days when two thirds or more of his working days were days spent working in the United Kingdom.

Example 3

An employee was sent by her French employer to work in the United Kingdom to oversee the installation and testing of a new computer system at its subsidiary. She arrived in the United Kingdom on 1 May 2004. She completed her assignment on 15 June having spent 24 out of 33 working days in the United Kingdom. She then remained in the United Kingdom to visit friends and finally left on 10 July.

Her employer paid the travelling expenses of her husband who arrived in the United Kingdom to visit her on 10 June.

She would not be entitled to a deduction under Section 374 for her husband’s travelling expenses. The period when she was in the United Kingdom for the purpose of performing her duties was only 46 days (1 May 2004 to 15 June 2004) so the 60 days rule cannot be satisfied.