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HMRC internal manual

PAYE Manual

Employment maintenance: create employment: P46(Expat) receipt and post departure EXPAT P14

From April 2010, the EXPAT process has been enhanced to develop the capabilities introduced in June and November 2009.

The enhancement will enable the processing of the new P46(Expat) form or equivalent starter information received on a Full Payment Submission (FPS) from an RTI employer. This form is used solely for foreign nationals seconded or assigned to work in the UK but paid by the foreign employer. The UK employer must deduct tax.

In addition, the processing around receipt of forms P14 will be enhanced to ensure that forms P14 received for EXPAT individuals relating to payments received by the individual after they have left their employment, are identified and processed.

The enhancements introduced will result in the following automated process for P46(Expat) and P14 received post departure

  • Determine whether or not an employment from a P46(Expat) form is already recorded see 3 below
  • The batch Trace and Match functions will be extended to accept the new P46(Expat) form as an input

When a new employment is created one of three processing paths will occur.

1. A new employment will be created and work item 310 will be created
2. A matching employment is already held but the specialist business area of the individual needs to be updated to use the new reference data, work item 311 will be created
3. P46 (Expat) form or equivalent FPS starter information is discarded as a matching employment is already held with the correct specialist business area set

In addition

  • It will indicate records that are EPM6 (Modified) or EEA / Commonwealth citizens and take appropriate actions
  • Work item 49 will not be raised when a new individual taxpayer record is created from a P46(Expat)

In order to correctly process forms P14 received for EXPAT individuals the system must be able to

  • Generate a work item when a new employment is created as a result of the receipt of a post-departure P14 for a EXPAT taxpayer record as follows

    • Work item 312 if it is an SA case
    • Work item 313 if it is a non SA case

Tax code calculation rules

Where the EPM6 (Modified) indicator has been set against the primary employment record, the tax code will be restricted to ‘Personal Allowances’ only. This means that any entries included within IABD will not be included within the individual’s tax code.