• Coming to work in the UK for a UK company or the UK branch of an overseas company, or are • Legally employed by a UK resident employer, but economically employed by a separate non-resident entity • Expected to stay in the UK for 183 days or less in any 12-month period
It must be shown that for those employees specifically named, who’s presence in the UK is for 60 days or more, that the UK company or branch will not ultimately bear the remuneration specified.
Where there is an agreement reached and in all other aspects the employee falls within the guidelines, then that part of the remuneration not ultimately borne by the UK Company or branch can fall within this arrangement.
Arrangements will not apply where the expense of the remuneration is passed on to another UK Company or branch and not recharged overseas.
If an employee’s presence in the UK is for 59 days or less, it is only necessary to show that the employees were paid via a non-resident employer’s payroll.
The arrangement must not be applied whereby an individual is employed by a UK resident employer, including an overseas branch of a UK resident employer, except where the individuals are sent abroad to work for a separate non- resident entity and return to perform duties in the UK solely for that non-resident employer. Such individuals are not covered by the 60-day rule.
If an employer has only one or two employees potentially affected, they may like to consider applying for an NT code on an individual basis instead.
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Update on reporting Appendix 7A and 7B returns 1 June 2020
Further to the announcement in regards to sending Appendix 4 returns via email, HMRC have advised that the same email address (Contactexpat@hmrc.gov.uk ) can be also used to file Appendix 7A returns.
If you choose to use the email address to submit Appendix 7A returns, you should enter “App 7A report” as the subject field for the email. Those with Shared workspace access can also file using that route for Appendix 7A returns.
HMRC advise that if you have already submitted your Appendix 7A return via the email address of techsupportteamint.mcoperations@hmrc.gov.uk, then those returns have been accepted and there is no requirement to resubmit using the newly advised email address. HMRC have set up a new email address for those who are required to submit an Appendix 7B return. This email address (nsrappendix7b@hmrc.gov.uk) is to be strictly used to report Appendix 7B returns only and the team who manages this mailbox will not respond by email. HMRC are currently looking into arranging an auto response so that the employer is automatically notified that their return has been accepted.
HMRC remind employers of the risks involved when submitting returns via email and ask that employers consider the points below before making a submission.
About the risks The main risks associated with using email that concern HMRC are:
• Confidentiality and privacy – there is a risk that emails sent over the internet may be intercepted • Confirming your identity – it is crucial that we only communicate with established contacts at their correct email addresses • There is no guarantee that an email received over an insecure network, like the internet, has not been altered during transit • Attachments could contain a virus or malicious code
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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