New PAYE regulations
A new statutory instrument (SI 2009 No. 588) introduces changes to a number of aspects of the PAYE system. The main change is the introduction of a new P46 form for seconded expatriates. This new form has been designed to allow HRMC to identify employees seconded to the UK and toensure that their tax records and codes are set-up correctly.
This measure is aimed at employees on assignment in the UK for an overseas employer as well as individuals working in the UK at a branch of an overseas employer’s business.
The other measures covered in the SI are as follows:
1. A technical change in HMRC’s powers to inspect an employer’s PAYE records. From 1 April 2009 these records will be part of the statutory records which HMRC can inspect.
2. The removal of the requirement to report quarterly changes to the P46 Car return where one company car is replaced with another.
3. Changes in arrangements applicable to members of the reserve forces in respect of payments from the Ministry of Defence.