# UK taxation of a bonus received from former US employer?



## neekolas86 (Oct 10, 2016)

As a US citizen and current UK resident as of 2016 how does the UK tax (if at all) an end-of-year bonus received for work completed with a US employer in 2016 prior to moving to the UK? Length of time working for the US employer was approximately the first 3 weeks of January 2016. UK employer is not related to the former US employer.

Thanks!


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## iota2014 (Jul 30, 2015)

Have a look at Article 14 in the double taxation treaty.

https://www.gov.uk/government/publications/usa-tax-treaties


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## Bevdeforges (Nov 16, 2007)

First of all, the UK tax year runs from April to April (April 6 to April 5th, IIRC). So you may well have the argument that this bonus relates to your US employment and is just "delayed" payment of that salary. (Though I don't know how the UK tracks those things. Whether they go by "cash basis" - i.e. when you receive the money - or accrual basis - i.e. when you "earned" it.)

Let's see if we can flag down someone more familiar with the UK system.
Cheers,
Bev


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## Dunedin (Aug 12, 2013)

The starting point is to apply the UK rules on residence, under the Statutory Residence Test.
In the tax year 2016/17, it is likely that the split year treatment will apply. The payment relates to the non resident part of the split year. It is therefore not taxable in the UK. The residence status at the time of the payment is not relevant.


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