International Assignments: Amended HMRC arrival procedures for expatriate employees
Notifications of new arrivals in the UK will no longer be accepted
by HMRC if the correct form is not submitted by employers
HM Revenue & Customs (HMRC) has confirmed that they will no
longer accept notifications of new arrivals where employers do not
submit the P46 (Expat) form. Employers with ‘inward’ expatriate
employees who do not use form P46 (Expat) but who instead submit form
P86 (Arrival in the UK) and form 64-8 to notify HMRC of the arrival in
the UK of a new employee will have these forms returned to them. Upon
receipt of the correct P46 (Expat) form, HMRC will set up tax records
and issue a Unique Tax Reference and tax returns to the employee
following the end of the tax year.
Inward expatriates who remain employed overseas
A distinction should be made between an ‘inward’ expatriate who
remains employed overseas and an employee who is transferred to the UK,
signing a local UK employment contract. According to HMRC, an ‘inward’
expatriate is any non-UK domiciled individual working wholly or partly
in the UK and who retains an employment relationship with a non-UK
resident employer. This would, for example, include local hires who hold
dual employment contract arrangements, but would exclude individuals
who had come to the UK on an international assignment being offered
employment locally by a UK employer.
Employers should review their procedures and ensure that they use
the correct form to notify HMRC of any new employee arrivals in the UK.
For further information or to discuss the issues raised, please
contact Guy Abbiss (firstname.lastname@example.org)
or Bina Gayadien (email@example.com)
on +44 (0) 203 051 5711.
is for general information purposes only. The information provided is
not intended to be comprehensive and it does not constitute or contain
legal or other advice. If you require assistance in relation to any
issue, please seek specific advice relevant to your particular