Part 11

Pay As You Earn
Chapter 3

PAYE: special types of payer or payee

Direction by HMRC in relation to qualifying new residents
690E
1
This section applies where—
a
a notice given during the qualifying year under section 690D has effect, and
b
it appears to an officer of Revenue and Customs that the proportion of any qualifying payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice.
2
An officer of Revenue and Customs may give a direction—
a
for determining a proportion of any qualifying payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or
b
that any such 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 qualifying year,
b
must be given by notice to the appropriate person, and
c
may be varied by notice to the appropriate person from a day 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 qualifying payment is made by the employer to the employee in any tax year,
the direction applies to the 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 notice has subsequently been—
a
given by the appropriate person under section 690A (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the qualifying year, and
b
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.
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10
Ss. 690D, 690E inserted for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 4 (with Sch. 8 Pt. 3)