Overseas Workday Relief can remove part of your employment income from UK tax where you are a qualifying new resident and perform employment duties outside the UK. This calculator gives a deliberately simplified estimate for regular salary under the rules applying from 6 April 2025.
Overseas Workday Relief Calculator
How the estimate works
For regular salary, the tool first removes the proportion relating to workdays in the overseas part of a split tax year. It then estimates the part of the remaining employment income attributable to overseas duties performed during the UK part of the year.
For qualifying years from 6 April 2025, the annual OWR financial limit is generally the lower of 30% of relevant qualifying employment income and £300,000. The calculator therefore compares the overseas-duty allocation with that financial limit and displays the lower amount as estimated OWR.
Who can use the new OWR regime?
Broadly, the post-6 April 2025 regime is available where you are UK resident in the relevant tax year and are within your first four years of UK residence after at least 10 consecutive tax years of non-UK residence. Eligibility is tied to being a qualifying new resident; you do not have to make a separate FIG claim simply to be eligible for OWR.
What if you arrived part-way through the tax year?
If split-year treatment applies, income relating to duties in the overseas part is generally dealt with before OWR rather than being claimed as OWR. Use our Departure Date & Split-Year Optimiser and UK Statutory Residence Test Tracker to establish the residence boundary before relying on the estimate.
When this calculator is too simple
Bonuses and share awards can relate to a different earning period from the year in which they are paid, and the OWR financial limit can operate cumulatively across later receipt years. Transitional claimants and earnings relating to duties before 6 April 2025 can also remain subject to older remittance-basis conditions.
Those cases need an earning-period calculation and a proper evidence file rather than a headline percentage. Read our full guide to the FIG regime and Overseas Workday Relief or book an OWR review if your remuneration is more complicated than ordinary salary.
What the public calculator does not calculate
It does not calculate your final income tax bill, PAYE refund, foreign tax credits, National Insurance, treaty residence or the effect of losing allowances. It also assumes that the workday figures and split-year boundary you enter are already correct.
Bonuses, RSUs and share awards
These can require an earning-period or securities-period allocation across more than one tax year. Use a detailed OWR review rather than the simplified salary calculator.
Pre-6 April 2025 or transitional OWR
Older OWR rules and transitional provisions can change both eligibility and the financial limit, and pre-2025 trailing income may still carry remittance conditions. Those cases need a separate old/new-regime analysis before any claim is made.
Multiple employments or material deductions
The statutory financial limit is applied using qualifying employment income after the relevant rules for deductions, and multiple employments can share the same annual limit. A simple salary percentage can therefore overstate or understate the relief.
Official sources
The calculator has been designed against HMRC's current Overseas Workday Relief guidance, including the post-6 April 2025 eligibility and annual financial-limit rules. For detailed cases, HMRC's Employment Income Manual should be reviewed alongside the Statutory Residence Test.
