PAYE Procedures – Modified procedures in tax equalisation cases

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UK employers of foreign national employees coming to work in the UK may be paid net cash earnings and non-cash benefits on the basis that the employer undertakes, using modified PAYE arrangements, to meet the UK tax liabilities involved and ensure that the employees’ tax affairs are handled by someone experienced in tax equalisation procedures.

The Appendix 6 application used by employers in order to obtain approval to use the modified PAYE procedures has been amended so that it no longer commits the employer to submitting P85 and P86 forms when the employee in question leaves and returns to the UK.  However, employers are committed to updating the estimated PAYE calculation to reflect all employee arrivals and departures.

Further information:

Revised Modified PAYE arrangement for expatriate employees – Appendix 6

EP Appendix 6: Modified PAYE in tax equalisation cases

This entry was posted on Friday, May 7th, 2010 at 10:13 and is filed under PAYE Procedures, UK Income Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.