UK Autumn Statement | International mobility considerations

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EY Global

18 Nov 2022 PDF
Subject Tax Alert
Categories Mobility Tax
Jurisdictions United Kingdom

On 17 November 2022, the UK Chancellor (Finance Minister) presented his Autumn financial statement for the forthcoming financial year starting in April 2023.

The most significant announcements impacting international mobility programmes are as follows:

  • Freezing of the tax (20% and 40% rates) and social security thresholds. These are already fixed at their current levels until April 2026 and will remain the same for a further 2 tax years, to April 2028.
  • The 45% tax rate will be payable on annual income above £125,140 (previously £150,000).
  • There will also be no change to the tax-free personal allowance until April 2028.

Employers who operate tax equalization arrangements for their employees may wish to review forecasts for grossed up taxes payable on behalf of inbound assignees whose earnings were not previously taxable at the 45% rate.

For outbound assignees, hypothetical taxes should be increased if earnings exceed £125,140, impacting net pay.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

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