Pay As You Earn (PAYE) special arrangements for Short Term Business Visitors (STBVs) were introduced alongside the normal STBV Appendix 4 to allow for a simplified PAYE procedure to be operated for STBVs. These arrangements were brought in to relax the PAYE requirements for employers with STBVs from overseas branches or territories with which the UK does not have a Double Taxation Agreement (DTA). From 6 April 2020, the current PAYE “special” arrangements will be changing and become known as ‘STBV Appendix 8’.
These changes to the Appendix 8 include:
- an increase in the UK workday limit from 30 to 60 days
- The deadline for filing and to make payments will change from the 19 and 22 April (respectively) to 31 May
As a result, businesses will have additional time to complete returns and pay the money owed to HRMC; as well as increasing the potential number of employees that can be reported under the STBV Appendix 8. These changes will bring more of the reporting responsibilities required for STBV from countries without a DTA in line with countries that do.
To qualify to be reported under the existing special STBV arrangements per Regulation 141, the employee must:
- Be resident in a country with which the UK does not have a Double Taxation Agreement
- Be coming to work in the UK for a UK company or the UK branch of an overseas company
- Have 30 UK workdays or less
- Be expected to stay in the UK for 183 days or less in any twelve-month period
Businesses that are already operating under the Regulation 141 arrangement will need to sign-up to the new Appendix 8. However, the way returns are filed and payments are made will not change.
Please be aware that as these changes do not take place until 2020, any STBVs that are working in the UK during the 2019/20 tax year will need reported in line with the current guidance as these changes will not take effect until the 2020/21 tax year.
If you need any assistance or would like any further information on STBV reporting and the associated tracking of internationally mobile employees, please do not hesitate to contact Karen Groat or your usual AAB contact.