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HMRC internal manual

PAYE Manual

PAYE operation: international employments: employer claims operation of PAYE not practicable

Departures from the UK

Employees of a UK employer may be seconded abroad in circumstances where they continue to be liable to UK tax after departure, so that it is not appropriate to issue an NT code. In such cases, the employer should continue to deduct tax under PAYE and regardless of the tax position, there may be continuing NICs obligations.

Employers sending employees to work abroad whose earnings remain liable to UK NICs, but not to UK tax, may apply to operate Modified NICs. See PAYE81700.

If an employer claims there are problems with operating PAYE or NICs in relation to employees seconded abroad, obtain full details about the nature of the difficulties and confirm how and where employees are paid. You should now seek advice from Personal Tax Customer, Product & Process, PAYE Technical, Shipley.