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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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PAYE operation: international employments: action on receipt of completed form P85

Departures from the UK

If the form P85 shows the employee is going to work abroad for a specific duration with every intention of returning to the UK

  • Refer to the Residence, Domicile and Remittance Basis Manual (RDRM), Chapter 1 Residence

You need to take particular action for some employees who are going to work abroad for a specific duration. It depends on the type of work taken abroad.

Crew member of a merchant ship owned or operated by a non UK concern

  • Ask the Marine Section, South Wales Area to transfer in the record and to deal with the continuing tax liability

A contract with a non UK concern in oil or gas exploration or exploitation offshore - the contract has a set rota of days on and days off

  • Use EI to attempt to trace a PAYE scheme for the new employer

    • If a scheme is found, ask the responsible office to transfer in the record
    • If a scheme is not found, ask the Employers Section, East Kilbride to transfer in the record

Service with the UK Diplomatic Mission of an overseas country

  • Ask the Embassy Unit, Chapel Wharf to transfer in the record. Advise at which Embassy or High Commission service is taken

Other employment with non UK employers - frequent or lengthy returns mean the employee is unlikely to be non resident

  • Ensure that the employee makes SA returns during the period of overseas employment

Service with the European Union

If the employee has

  • Other income that includes UK Government pay, allowances or pension

    • Refer to South Wales Area Residence Group for advice on residence status and tax liability
  • Other UK income

    • Refer to CAR PTI Advisory (Residence & Domicile Technical Team) Bootle

Crown employment overseas or overseas employment with emoluments paid by the Overseas Development Authority (ODA), now known as Department for International Development (DFID) or pension received in respect of Crown service including service in HM Forces

  • Refer to South Wales Area Residence Group for advice on residence status and tax liability

Service with a non commercial international organisation of which the UK Government is a sponsor member - for example, NATO, United Nations

  • Refer to Customs and International, Tax Treaty Team for advice on any exemption due or any action to take to establish title to exemption (see RE2400)

In all other cases

  • Refer to the Residence, Domicile and Remittance Basis Manual (RDRM), Chapter 1 Residence, which tells you

    • When you can decide the employee’s residence status

    And

    • When to refer the case to CAR PTI Advisory (Residence & Domicile Technical Team) Bootle
  • The RDRM, Chapter 1 Residence also provides guidance on further action to take in other areas such as

    • Overseas income
    • UK dividends
    • Claims to relief / exemption
    • Personal pension scheme
    • Income from UK property
    • Capital gains