Overseas Workday Relief
If you’re an entertainer or sportsperson who is UK resident but non-UK domiciled in the tax year, relief may also be available to you through Overseas Workday Relief.
An example of this would be Cristiano Ronaldo, who re-signed for Manchester United football club in the summer of 2021, and would potentially qualify for the relief in the 2021/22, 2022/23 and 2023/24 tax years. As Ronaldo has been non-UK resident for the previous three tax years and is likely to claim the remittance basis of taxation, he will only pay UK income tax on his earnings from his employment duties performed outside the UK, to the extent that those earnings are remitted to the UK.
On the basis that Ronaldo is likely to have separate contracts for his UK and non-UK duties, Overseas Workday Relief will be applicable for his earnings in relation to duties performed overseas. For example, if Ronaldo has a single contract with a sponsoring company, his income from this company will be apportioned between his UK and non-UK days based on the number of UK and non-UK workdays in the year. The income from non-UK employment duties, as apportioned, will be taxable on a remittance basis, meaning Ronaldo will not be liable to UK income tax as long as the money does not enter the UK.