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Understanding the UK 60-Day Rule for Short-Term Business Visitors

If you’re an overseas employer sending staff to the UK for short business visits, or if you’re an employee travelling to the UK as part of a short-term assignment, you may have heard of the so-called “60-day rule”. But what does it mean in practice?

This page explains the rule, when it applies, and how it can help reduce UK payroll compliance obligations, even when the UK technically has taxing rights.

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What Is the 60-Day Rule?

The UK has a unilateral easement (a relaxation of its usual tax rules) for very short visits by overseas employees. Under this easement, the UK agrees not to exercise its taxing rights over UK workdays if the individual is in the UK for fewer than 60 days in a UK tax year (6 April to 5 April), and the 60 days are not part of a longer period of assignment or repeated pattern of visits. This rule can help avoid the need to put overseas staff on the UK payroll when they are only working in the UK for a short period.

When Does the 60-Day Rule Apply?

The rule only comes into play if the UK already has taxing rights over the individual’s UK workdays. That happens when either:

  • The UK subsidiary is the economic employer, even if the legal contract is with an overseas company (e.g. because the UK bears the cost of the employee or recharges apply).
  • The employee is working in the UK for a UK permanent establishment (PE) of the overseas company.

 
In such cases, the normal exemption in the double tax treaty does not apply, even if the employee is paid by the overseas employer and is only present for a short time.

However, the UK chooses not to enforce its taxing rights in these cases if the 60-day rule conditions are met.

Conditions for the 60-Day Rule

To benefit from the 60-day rule:

  1. The employee must be resident in a country that has a full double tax treaty with the UK.
  2. They must be present in the UK for fewer than 60 days in a UK tax year.
  3. Their UK workdays must not be part of a longer assignment or integrated pattern of work in the UK.
  4. They must not be included on the UK payroll

Practical Examples

  • Example 1: Alex works in the UK for 50 days in a tax year for a UK subsidiary. The UK is the economic employer, but since Alex is present for fewer than 60 days and does not return later in the year, the UK agrees not to tax those workdays.
  • Example 2: Bea works in the UK for 55 days in Year 1, then returns unexpectedly for another 40 days in Year 2. Since these are clearly separate visits, each stay qualifies under the 60-day rule.
  • Example 3: Carl visits the UK subsidiary for 59 days every year. Because there is a regular pattern and integration into the UK business, the 60-day rule does not apply. PAYE must be operated from the start.

When the Rule Doesn’t Apply

  • The employee is paid through the UK payroll.
  • The UK does not have a double tax treaty with the employee’s country of residence.
  • The visits exceed 60 days or are part of a longer-term assignment.
  • The visits form part of a repeating pattern of regular work in the UK.

What Employers Need to Do

  • Track short-term business visitors carefully.
  • Assess whether UK tax rights exist (see our Taxing Rights for Inbound Employees page).
  • Consider applying for a Short Term Business Visitor Agreement (STBVA) to reduce payroll admin.

 
We can assist you with:

  • Assessing eligibility for the 60-day rule
  • Determining when UK PAYE applies
  • Applying for STBVA agreements
  • Managing UK compliance for visiting employees

FAQs

Directors have different rules. The 60-day rule does not apply to non-resident directors working in the UK. See our Director Tax Guide.

Need help determining if the 60-day rule applies?

Contact our team today. We’ll assess your visitors and help ensure UK compliance while avoiding unnecessary payroll burdens.

Sarah English

Senior Manager

Head of Direct Taxes

sarah.english@tuerner.com
+44 (0) 1636 526 075

Liam Perry

Senior Associate

Global Mobility, Personal Tax & VAT

liam.perry@tuerner.com
+44 (0) 1636 526 075

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