The survey will close on 28 August 2012.
REAL TIME INFORMATION – REVISED AGREEMENTS FROM APRIL 2013
15 August 2012
Employers' existing EP Appendix 6, 7a and 7b agreements cease to be effective from 6 April 2013 or earlier for employers who start sending PAYE information in real time. HMRC recommends that you apply for these new agreements early to avoid the busy year-end application period.
EP appendix 6 - Modified PAYE in tax equalisation cases
Application for modified PAYE for tax equalised expatriate employees. Tax equalisation generally describes an arrangement between an employer and a foreign national employee who comes to the UK to work. Under the terms of an agreement, the employee is entitled to specified net cash earnings and non-cash benefits. The employer undertakes to meet the UK Income Tax liability arising from the earnings and to ensure that the employee’s UK tax affairs will be handled by a professional adviser or by an in-house specialist experienced in tax equalisation issues.
EP Appendix 7a - modified class 1 and class 1a National Insurance contributions for expatriate employees subject to an EP appendix 6 agreement
This application applies only to those employees who
1. Are subject to an EP Appendix 6 agreement, and 2. Are assigned to work in the United Kingdom (UK) from abroad and have an employer or host employer in the UK liable for secondary UK NICs liabilities, and 3. Pay NICs on earnings in this employment, above the annual upper earnings limit (UEL) for the year, or on earnings at or above the UEL in each earnings period throughout the year. If an employee joins, commences liability part way through an earnings period, or leaves the employment part way through an earnings period, that shall not invalidate the agreement, provided that a. For employees with monthly earnings periods, NICs are calculated and paid on earnings at or above the UEL in all months other than the month in which the employee joined or left b. For employees with an annual earnings period, NICs are calculated and paid on earnings to the person’s pro-rata annual or annual UEL. (If an employee with an annual earnings period starts after tax week 1 they will have an annual pro-rata earnings period. If a person starts before or during tax week 1 they will have an annual earnings period irrespective of if and when they leave the employment
EP appendix 7b - Modified class 1 National Insurance contributions for employees assigned from the United Kingdom (UK) to work overseas
This application applies only to those employees who
1. Are employed by a UK employer and are assigned to work abroad for a period of limited duration, but for more than a complete tax year, and a. Have an ongoing liability to UK National Insurance contributions (NICs) whilst abroad; and
b. Earn above the upper earnings limit (UEL) in every earnings period throughout the tax year. (I understand that it shall not invalidate this
agreement if an employee earns less than the UEL in the pay period they join the company, or in the pay period in which they leave, if in all other pay periods during the year, the UEL is exceeded. However, in the case of
CIPP Policy News Journal
12/04/2013, Page 191 of 362
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