EIM43585 - Globally mobile employees: Overseas Workday Relief: time limits for making a claim
Source: gov.uk (2025-04-06)


Both an election and a claim for OWR must be made in the relevant ITSA return by the anniversary of 31 January following the end of the relevant tax year. Therefore, to make a claim for OWR for the 2025-26 tax year, the election and the claim must be made in a return by 31 January 2028.

If, outside the time limit for making a claim, an employee identifies additional qualifying foreign employment income earned in a year for which an OWR election had been made, the relief will not apply to the additional income (except in the case of consequential claims – see below). However, this will not invalidate an earlier in-time claim, so the qualifying foreign employment income for which a valid claim has been made will still benefit from the relief.

Amending or withdrawing a claim

Claims can be amended or withdrawn and the usual time limit for doing so is the same as making a claim, unless a notice to file was issued after 31 October following the end of the relevant tax year to which the claim relates. Providing the original claim is made by the anniversary of 31 January following the end of the tax year, the claim can be amended or withdrawn up to the anniversary of 3 months following the date of the notice to file.

Example

Luna was given a notice to file for the 2025-26 tax year dated 20 December 2027. As per the time limit for making an OWR election and OWR claim for relief set out above, she must make any OWR election or OWR claim for the 2025-26 year by 31 January 2028. Providing Luna makes her claim in time, (by 31 January 2028) she has until 20 March 2028 to amend this claim (the anniversary of 3 months from the date of the notice to file).

Late claims

A late claim is an attempt to make a claim outside the statutory time limit. There is no provision within the OWR regime legislation that allows Commissioners to exercise their discretion to accept late claims. This means that a late claim for the relief can only be allowed if it can be accepted under HMRC’s late claims policy.

Late claims are covered in more detail in the Self Assessment Claims Manual at SACM10030 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm10030) onwards. The legislation does allow a taxpayer to make various out-of-time actions where HMRC makes a discovery assessment or amends a return in an ITSA enquiry closure notice (see ‘Consequential claims’ below).

Consequential claims

If HMRC makes an assessment (for example a discovery assessment) or amend a return to recover a loss of tax, legislation allows a taxpayer to make various out-of-time actions relating to claims and elections. These actions are known as consequential claims. Whether a consequential claim is allowed depends on the behaviour that has led to HMRC making the assessment or amendment.

Employees can make an OWR election or OWR claim for relief as a consequential claim, if an assessment or amendment is being made to recover a tax loss that is not brought about carelessly or deliberately by that person or by someone acting on their behalf. However, individuals are prevented from making a consequential claim under the OWR regime if an assessment or amendment is being made to recover a loss of tax brought about by careless or deliberate behaviour by sections 41M & 41P ITEPA 2003.

Guidance on consequential claims, including the time limits which apply to these claims, can be found in the Self Assessment Claims Manual at SACM9000 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm9000).