International Assignments: Amended HMRC arrival procedures for expatriate employees

Posted on 3rd January, 2010

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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 ( or Bina Gayadien ( on +44 (0) 203 051 5711.


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