A consultation on draft legislation to enact HMRC’s Statement of Practice 1/09 (SP1/09) was published on 11 October 2012. SP1/09 allows internationally mobile employees carrying out duties both in the UK and overseas under a single contract of employment to apportion their employment income annually rather than operate the burdensome mixed funds rules.

The draft legislation, which is to be included in the Finance Bill 2013 and take effect from 6 April 2013, is accompanied by an explanation of the government’s approach to legislating SP1/09.