HMRC has laid regulations introducing changes to the special PAYE arrangement for short-term business visitors from overseas branches of UK companies with effect from 6 April 2020.
The Income Tax (Pay As You Earn) (Amendment) Regulations, SI 2020/88, extend the existing PAYE reporting and payment deadlines to 31 May following the end of the relevant tax year.
HMRC permits employers to enter into a special PAYE arrangement in respect of employees who arrive in the UK from overseas branches, or from territories that do not have a double taxation agreement with the UK, to work for the relevant UK company for a limited number of days in a tax year.
The special arrangement allows employers to operate an annual PAYE scheme for eligible individuals, requiring submission of a return by 19 April and payment of any tax due by 22 April following the end of the relevant tax year. Under current rules, ‘eligible individuals’ are those who work for a UK company for no more than 30 workdays in the UK in a given tax year.
At Budget 2018, following consultation, the government announced its intention to make two changes to the special PAYE arrangement to further ease the administrative burden on employers. These changes would:
increase the number of days eligible employees can work in the UK from 30 days to a maximum of 60 days; and
extend the existing PAYE reporting and payment deadlines of 19 April and 22 April to 31 May, to allow employers more time to gather relevant information about relevant employees.
This amendment to the PAYE regulations gives effect to the second of these changes.
HMRC will update its guidance in the PAYE manual (PAYE81950) in due course.
HMRC has laid regulations introducing changes to the special PAYE arrangement for short-term business visitors from overseas branches of UK companies with effect from 6 April 2020.
The Income Tax (Pay As You Earn) (Amendment) Regulations, SI 2020/88, extend the existing PAYE reporting and payment deadlines to 31 May following the end of the relevant tax year.
HMRC permits employers to enter into a special PAYE arrangement in respect of employees who arrive in the UK from overseas branches, or from territories that do not have a double taxation agreement with the UK, to work for the relevant UK company for a limited number of days in a tax year.
The special arrangement allows employers to operate an annual PAYE scheme for eligible individuals, requiring submission of a return by 19 April and payment of any tax due by 22 April following the end of the relevant tax year. Under current rules, ‘eligible individuals’ are those who work for a UK company for no more than 30 workdays in the UK in a given tax year.
At Budget 2018, following consultation, the government announced its intention to make two changes to the special PAYE arrangement to further ease the administrative burden on employers. These changes would:
increase the number of days eligible employees can work in the UK from 30 days to a maximum of 60 days; and
extend the existing PAYE reporting and payment deadlines of 19 April and 22 April to 31 May, to allow employers more time to gather relevant information about relevant employees.
This amendment to the PAYE regulations gives effect to the second of these changes.
HMRC will update its guidance in the PAYE manual (PAYE81950) in due course.
