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HMRC internal manual

Employment Income Manual

Employee resident but not ordinarily resident in the United Kingdom: Statement of Practice 1/09: frequently asked questions

Statement of Practice 1/09 (SP1/09) took effect from 6 April 2009. The full text of the SP is available at EIM40306. An explanation of the operation of SP1/09 is at EIM40305.

Will payment of income from two separate employments into a single account invalidate treatment of that account under SP1/09?


If an employee is paid a bonus by ABC Inc, relating to employments with two companies within the ABC group, can SP1/09 apply to that account?

No. An account containing income from separate employments, albeit from employments within the same group, is outside the scope of SP1/09.

If an individual and a spouse/partner have a joint account, into which each has their salary paid from their respective employments, does this mean SP1/09 cannot apply to that account?


How many accounts can qualify for SP1/09?

There is no limit to the number of accounts for one individual to which SP1/09 may apply if each account satisfies the relevant conditions - see EIM40305. If there are two or more accounts to which SP1/09 applies, the SP must be applied separately to each account. You do not take the accounts together and treat them as one.

If an account contains income or gains relating to more than one year, how will remittances from this single account be treated?

The rules in Section 809Q(3) determine the ordering rules on a last in, first out (LIFO) basis.

In the case of a payment of income relating to more than one tax year, the LIFO rules treat a remittance as income received in the tax year in which the transfer occurs first and then looks back at earlier years if necessary e.g. in the case of a payment of income relating to more than one tax year, the remittance is treated as income of the later year first.

Is there a de minimis amount for an oversight? For example, if I pay a cheque for £100 into the wrong account, does that mean SP1/09 cannot apply?

No and yes, respectively.