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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: Employment Status & Intermediaries (ES&I): dispensations - other teams - pre 6 April 2016

This page only applies prior to 6 April 2016

Personal Tax International (PT International)

PT International unit handles the affairs of inward expatriates who may be defined as non-UK domiciled individuals working in the UK who have an employment relationship with an employer resident outside the UK.

This definition includes (but is not limited to) individuals on assignment to the UK from overseas. It is also intended to include 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.

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

Where the employer has a separate, ‘dedicated’ PAYE scheme for its inward expatriate population, EXPAT unit will deal with the PAYE scheme. In all LB cases they will liaise with the LB Dispensation, PAYE Settlements Agreement Team, before any dispensation is given.

Where the employer has a ‘mixed’ scheme (see below) which includes inward expatriates and locally hired individuals, PT International will deal with employer issues in so far as they relate to inward expatriates within the scheme.

  • It is important that dispensation requests that relate to or include inward expatriates are correctly identified and receive input from PT International in accordance with the Protocol on the Local Compliance site.

‘Dedicated’ Expatriate PAYE scheme

Where a Dispensation request relates to employees within a ‘dedicated’ PAYE scheme this should always be referred to the PT International unit for them to deal with in collaboration with all appropriate interested parties for example ES&I, LB.

‘Mixed’ PAYE scheme

Where a dispensation request relates to employees within a ‘mixed’ PAYE scheme the dispensation should be issued by

  • LC ES&I teams
  • LB Dispensation/PSA Team (DPT)

This should take place following the appropriate liaison with the PT International unit, regardless of whether the initial application was received. See below

  • Request relating to employees within a ‘mixed’ PAYE scheme which does not apply to Inward Expatriates - the request should be dealt with by LB Specialist Team or the relevant Local Compliance Employment Status & Intermediaries (ES&I).
  • Request relating to employees within a ‘mixed’ PAYE scheme which also applies for Inward Expatriates - the LB Specialist Team or the relevant Local Compliance Employment Status & Intermediaries (ES&I) will liaise with the PT International and forward a copy of the request. The LB Specialist Team or the relevant LC ES&I will request a form of words from PT International unit in respect of Inward Expatriates which will be incorporated within the body of the dispensation.
  • Request received in Expatriate Teams for ‘mixed’ PAYE schemes in respect of an LB applicant which applies to Inward Expatriates. The dispensation request should be sent to the LB Specialist Team with a copy being retained and the applicant notified accordingly. LB Specialist team will liaise with PT International and a form of words to be included within the body of the dispensation will be requested.

The dispensation letter should make it clear whether the dispensation applies to or excludes inward expatriates