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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: liaison: specialist teams - personal tax international expatriates

The Expatriate teams are part of Specialist PT Personal Tax International and deal with both Compliance and Service aspects of tax and NIC work relating to both foreign national employees who work in the UK and in certain circumstances employees of UK companies who have been sent to work abroad.

Inward expatriates may be defined as non-domiciled individuals working in the UK who have an employment relationship with an employer resident outside the UK and includes (but is not limited to)

  • individuals on assignment to the UK from overseas
  • non-UK domiciled employees working in the UK on terms and conditions of employment which would not normally be available to someone who was recruited in the UK to work for a UK resident employer.

Personal Tax International also handles the affairs of employers who utilise the services of inward expatriates.

Ordinarily RIS may discover that a dedicated Expatriate PAYE Scheme exists for the employer and will usually refer the case to the Expatriate team.

However you may discover potential issues affecting such employers and or individuals

  • from the risk package, or
  • during the course of a compliance check.

If either of the above applies the Expatriate team must be contacted at an early stage and provided with the relevant information to establish whether the employer and or individual is a potential Expatriate case.

Details of the Expatriate team locations and EC managers can be found by accessing the Personal Tax International pages of the Specialist Personal Tax site on the Intranet. See also the protocol agreement between LC and Personal Tax International in the guidance section of the Personal Tax International site.

EU Large Employers

In CRM cases where you identify a dedicated Expatriate PAYE Scheme (identified by the reference number for example, 000/EXP1035), you will need to request a risk assessment for that PAYE Scheme from the Expatriate team.

Wherever you identify issues relating to inward expatriates you should consult with the Expatriate team to make sure that they have an opportunity to contribute to any risk assessment being referred to the CRM so that the full value of EC risks may be considered at one time.

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Shares Issues - Expatriates

Any case for which a form 42 is received by the Shares Unit (mixed or dedicated) where expatriates are involved and shares issues are discovered will be initially referred to the Expatriate team, who will undertake a further risk assessment. This will then be shared with the ECTS.

If the CRM then decides that it is appropriate for compliance activity there will be appropriate liaison with the Expatriate team to arrange joint activity.

Where an ECTS identifies the existence of a Share Scheme and Expatriates are involved (mixed scheme or otherwise) and a risk assessment of the form 42 is not held then the case should be referred to the relevant Expatriate Team who will make sure a risk assessment is undertaken and the details reported back.