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The changes announced in yesterday’s UK Budget could discourage French individuals from coming to the UK to work and invest, say leading tax, audit and business advisory firm, Blick Rothenberg.
Vanesha Kistoo, Head of the firm’s French Desk, said: “Due to changes announced in yesterday’s Budget by the Chancellor Rachel Reeves, individuals who travel between the U.K. and France for work will see their tax relief claim restricted to 30% of their qualifying employment earnings.”
She added: “This will be further reduced if the calculated relief is higher than £300,000 in a tax year, under the new Overseas Workdays Relief (OWR) claim. Which places a high tax burden on those coming from Europe to the UK to work.”
Vanesha said, “This is further compounded by the immigration requirements post Brexit, which now require individuals to either limit the time they spend in the UK, or get a visa if they would like to spend a substantial amount of time in the UK.
“From next year, Europeans will also have to comply with ETA requirements to enter the UK as visitors. Adding another administrative burden for individuals from France traveling to the UK to work.”
Vanesha said: “Due to this, there has been a notable change in the profile of individuals who travel between the U.K. and France for work as well as the type of working arrangements. Whilst it is possible to opt to conduct business meetings remotely, those expats working in the UK who need to spend more than 30% of their time working outside the UK will be penalised and see their tax relief restricted.”
She added: “If the UK Government seeks growth and to fill the ‘black hole’ in the country’s finances, they must encourage European individuals to come to the UK to invest and work. Not place heavier tax and administrative travel burdens on them.”
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