STBVAs. A new tax exemption would prevent double taxation of the individual’s earnings; and remove the requirement on the UK company to operate PAYE.
CIPP comment
In addition to survey data, the CIPP policy team always value hearing from members directly about some of the challenges they encounter when dealing with the administrative and technical burdens of pay and income tax. Please email us if you have experiences that you wish to share or issues that you think would benefit from being raised at the Expat Forum by the CIPP Member representative Carol Mason.
Thank you
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CIPP response to Consultation on Tax and administrative treatment of short term business visitors from overseas branches 13 August 2018
A consultation was published to consider two possible options of how change could be introduced to ease the administrative burden on employers dealing with the tax and administrative treatment of Short Term Business Visitors (STBV) from foreign permanent establishments (“overseas branches”) of UK companies.
In the consultation the government is considering two broad policy options aimed at realising improvements for UK companies:
7. Extending the PAYE special arrangement UK workday rule 8. A new tax exemption for STBVs from overseas branches
To provide feedback, over and above comments shared during an HMRC roundtable, the Policy team ran a survey of our members which ran throughout July. The survey findings, where relevant, are used to support our answers.
Summary conclusions
• The survey we ran to support this response received 10 responses in total, which is insignificant in contrast to the numbers that we would reasonably expect from our membership base and we know from other research that over 20% of our membership base manage international payrolls in addition to their UK payrolls. • It is believed that this low number reflects an apathy amongst affected employers when it comes to compliance with the significant administrative burden that is required for little or no yield to the exchequer – and thus there is a perception that this holds less importance than other tax and reporting obligations and is simply an ‘unnecessary’ significant administrative burden. • Whilst not covered within this consultation the current 19 April deadline for the STBV PAYE Special Arrangements is impractical and results in the annual need for submission of EYU’s. We would call for further consultation in this area that will result in a significant extension to the deadline for STBV PAYE special arrangement.
• There are benefits to be gained by the implementation of both option one and option two – we don’t see this as an ‘and/or’ choice.
• Consideration be given to consulting further on greater alignment with definitions and numbers for example day counts between different processes that are unique to affected employers in this space. We support the
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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