Changes to expat PAYE arrangements
HMRC has announced changes to the modified PAYE arrangements for expatriate employees. The changes apply from 6 April 2010. The detail of this relaxation known as ‘Appendix 6’ has been updated. These measures usually apply to an arrangement between an employer and a foreign national employee who comes to work in the UK.
The new Appendix 6 arrangement removes the requirement to submit forms P86 and P85 for employees within a Modified PAYE scheme. Employers, who currently operate the scheme, are no longer required to send any forms P86 (for employees arriving in the UK) or P85 (for employees leaving the UK) after 5 April 2010. The requirement continues however to submit the forms P46 (Expat) within 30 days of a foreign national entering the United Kingdom and P45 (Part 1) before the end of the tax year in which a foreign national leaves the UK.
Although the agreement is still referred to as ‘Appendix 6’ it is now located in section 82002 of the PAYE manualwww.hmrc.gov.uk/manuals/pommanual/paye82002.htm