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HMRC internal manual

Employment Income Manual

Employee resident, ordinarily resident or domiciled outside the United Kingdom: location of duties: absence from duties

Part 2 Chapter 5 ITEPA 2003

Section 38 provides rules that deal with the effect of absence on the place where the employment duties are performed for the purposes of the charging provisions in Part 2 Chapters 4 and 5 (Sections 22, 26 and 27).

If an employee who ordinarily works in the United Kingdom is absent from work, the general earnings for the period of absence must be treated as being for duties performed in the United Kingdom, even if the employee is in fact abroad at that time. If, exceptionally, the employee can show that if he had been working, the earnings would have been for working abroad then this rule is not applied.


An employee who is not ordinarily resident in the United Kingdom performs the duties of the employment in Manchester. Illness meant that a holiday in Florida was unexpectedly extended so the days normally spent in the United Kingdom were lost. The Inspector received a calculation of earnings chargeable under Section 15 that excluded salary attributable to the days of absence.

The Inspector successfully contended that Section 38 applied on the basis that the duties of the employment were normally performed in the United Kingdom. The earnings that had been excluded were therefore UK-based earnings within Section 15.