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HMRC internal manual

PAYE Manual

PAYE operation: international employments: employer required to deduct foreign tax from employees' pay

Departures from the UK

If a UK employer has UK employees working abroad, an overseas Revenue authority may ask the employer to deduct foreign tax from the employees’ wages. The CWG2, Employer Further Guide to PAYE and NICs advises employers to

  • Explain to the overseas Revenue authorities that they have a continuing responsibility for making UK tax deductions from the employees’ wages
  • Find out exactly why the overseas Revenue authority wants the deductions made


  • Then seek advice from their HMRC office.

PAYE81715 onwards gives guidance on how to deal with approaches from employers.