Part 11Pay As You Earn

Chapter 3PAYE: special types of payer or payee

F1690AEmployer notification for internationally mobile employees

(1)

This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of section 690(2) at any time in tax year 2025-26 or a subsequent tax year (“the mobile tax year”).

(2)

The appropriate person may give a notice to an officer of Revenue and Customs at any time during the mobile tax year—

(a)

that the employer is proposing to treat F2the non-PAYE proportion of any mobile payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and

(b)

specifying that proportion.

F3(2A)

For the purposes of this section and section 690B—

(a)

“mobile payment” means a payment of, or on account of, an amount of employment income of the employee in respect of which—

(i)

the extent to which the income is PAYE income depends or may depend on the extent to which the employee’s duties during the mobile tax year are performed in the United Kingdom, and

(ii)

the reason it depends or may depend on that extent is connected to the employee being or having been internationally mobile in the mobile tax year;

(b)

“non-PAYE proportion” means the best estimate that can reasonably be made of the overall proportion of the amount of all mobile payments made by the employer to the employee that would not be PAYE income if the employee were non-UK resident for the mobile tax year or the mobile tax year were a split year as respects the employee (as appropriate).

(3)

If a notice given under this section has effect, the proportion of any F4mobile payment made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.

F5(4)

But subsection (3) does not apply to a mobile payment—

(a)

to the extent that section 690D(4) or 690E(4) (qualifying payments or treaty affected payments) also applies to the payment, or

(b)

if the payment is made after the end of the mobile tax year, other than to the extent the payment is also an uncertain payment.

(5)

A notice given under this section—

(a)

does not have effect if a direction has previously been given to the appropriate person under section 690B (direction by HMRC in relation to internationally mobile employees) in relation to the employee and the mobile tax year;

(b)

otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.

(6)

A notice given under this section ceases to have effect if—

(a)

a direction under section 690B is given to the appropriate person in relation to the employee and the mobile tax year,

F6(aa)

as a result of a change in the employee’s circumstances, the proportion specified in the notice ceases to be a reasonable estimate of the non-PAYE proportion,

(b)

a subsequent notice is given by the appropriate person under this section F7in relation to the employee and the mobile tax year and is acknowledged by an officer of Revenue and Customs, or

F8(c)

section 690D (qualifying new resident or treaty non-resident employee) begins to apply in relation to the employee and the mobile tax year and the mobile tax year is not likely to be a split year as respects the employee.

(7)

A notice given under this section must be in such manner and form, and contain such information, as may be specified in a general direction made by the Commissioners for His Majesty’s Revenue and Customs.

(8)

Subsection (3) is without prejudice to—

(a)

any assessment in respect of the income of the employee in question, and

(b)

any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid.

(9)

For the purposes of this section and sections 690B, 690D and 690E —

(a)

where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 693 (cash vouchers), section 694 (non-cash vouchers) or section 695 (credit-tokens), the employer is to be treated as making a payment of that amount of employment income, and

(b)

“the appropriate person” means—

(i)

the person designated by the employer for the purpose of this section and sections 690B, 690D and 690E and, if no person is so designated, the employer, and

(ii)

in a case where section 689 or 689A applies, the references to the employer in sub-paragraph (i) are to be read as references to the relevant person (within the meaning of section 689 or 689A).