Part 11Pay As You Earn

Chapter 3PAYE: special types of payer or payee

F1690BDirection by HMRC in relation to internationally mobile employees

(1)

This section applies where—

(a)

a notice given during the mobile tax year under section 690A has effect, ...

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)

An officer of Revenue and Customs may give a direction—

(a)

for determining F2the non-PAYE proportion, or

(b)

that any F3uncertain payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.

(3)

A direction under subsection (2)—

(a)

must specify the employee and the mobile tax year,

(b)

must be given by notice to the appropriate person, and

(c)

may be varied by notice to the appropriate person from a date specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).

(4)

If—

(a)

a direction under subsection (2) has effect, and

(b)

any uncertain payment F4or mobile payment (as applicable) is made by the employer to the employee in any tax year,

the direction applies in relation to the payment.

F5(4A)

But a direction for determining the non-PAYE proportion does not apply in relation 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 direction under subsection (2) has effect when it is given.

(6)

A direction under subsection (2) ceases to have effect if—

(a)

the notice to which the direction relates was given on the basis that the employee was likely to be non-UK resident for the mobile tax year, and

(b)

a notice has subsequently been—

(i)

given by the appropriate person under section 690D (employer notification for qualifying new resident F6or treaty non-resident) on the basis that the employee is or is likely to be a qualifying new resident for the mobile tax year F7or treaty non-resident at any time in the mobile tax year, and

(ii)

acknowledged by an officer of Revenue and Customs.

(7)

Subsection (4) 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.