Digital Nomad
Compliance Essentials for Globally Mobile Employees in the UK
UK’s recent changes around Overseas Workday Relief and PAYE notifications impose new limits and requirements for employees who earn income both inside and outside the UK.
By NomadicTax Research Team • 5-8 min read • April 26, 2026
## Overview of Overseas Workday Relief and New Requirements
From **6 April 2025**, the UK introduced major changes to how **Overseas Workday Relief (OWR)** works. Qualifying new residents may claim relief based on foreign employment duties—subject to limits. ([gov.uk](https://www.gov.uk/government/publications/globally-mobile-employees/overseas-workday-relief?utm_source=openai))
As of **6 April 2026**, further adjustments impact employers' filing and PAYE notifications regarding globally mobile employees. Employers must ensure estimates of non-UK earnings don't exceed **30%** when completing PAYE notification forms for eligible employees. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Compliance Steps for Employees and Employers
- **Qualifying new resident** must determine if they meet the criteria: arrival date, residence status, and income structure. Relief is allowed up to the lower of **30% of qualifying employment income** or **£300,000** per qualifying year. ([gov.uk](https://www.gov.uk/government/publications/globally-mobile-employees/overseas-workday-relief?utm_source=openai))
- Employers must send updated PAYE notifications (formerly “section 690” forms) specifying percentage of income subject to PAYE. From 6 April 2026, ensure those percentages reflect a **best estimate** and **not more than 30%** non-UK earnings. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- Transitional provisions apply. Some employees subject to earlier rules may continue under them. Employers and employees should double-check residency and treaty circumstances. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Practical Guidance for Globally Mobile Individuals
- Maintain detailed records of days worked abroad vs days worked in the UK. These help support OWR claims and PAYE allocations.
- When entering into contracts, clarify which income relates to non-UK work and whether deductions apply.
- If the percentage of non-UK income estimate is wrong and you exceed 30%, there could be underpayments; consider adjusting estimates mid-year if necessary.
## Example Case
Oliver moves to the UK and becomes resident on **1 May 2025**. He works 60% of his time in the UK and 40% abroad. He is a qualifying new resident, so for his 2025-26 year, he may make an OWR election. He estimates that **40%** of his employment duties are outside the UK. But since the OWR limit means the **ratio of non-UK earnings** through PAYE notifications must **not exceed 30%**, Oliver and his employer should instead input **30%** as the non-UK share for PAYE purposes. He can still claim more up to the limits via self-assessment later if properly documented, but PAYE must stay within 30%.
**Bottom Line:** Employers and global employees must carefully estimate non-UK income, stay under the 30% threshold for PAYE filing, and keep records to support any relief claimed.