22 Sep Hmrc Appendix 4 Agreement
As part of the first option, HMRC proposes to increase the annual PAYE program limit from 30 days to 60 days. This would apply both to STBVs in UK branches and to STBVs in countries that do not currently have a double taxation agreement with the UK (e.g. B Brazil). We recommend that all companies that regularly send staff to the UK enter into written agreements with employees in order to collect the necessary information. Such agreements may be made available upon request. HMRC indicated that the long lead was necessary due to changes to its own payment and accounting systems, as well as to third-party payroll software. While system changes may be necessary to guard against penalties and erroneous interest charges related to the half-extension of deadlines, there is no obvious reason to increase the maximum number of working days for which the agreement can apply. The special regime is dealt with on only one page of HMRC`s PAYE manual, which appears to be slightly modified. Regardless of what has been said above, where the costs are incurred, it is also possible to apply for the inclusion of a particular worker in an Annex 4 agreement, although his or her costs are borne in the United Kingdom, provided that he/she can be proved that he/she is economically employed outside the United Kingdom. These applications must be made on a case-by-case basis by employers before workers can be covered by the agreement set out in Annex 4, so that the old OECD model test (which effectively covers the costs) and the new test (which employs the person economically) are effectively applied before a contract exemption is allowed.
However, the emphasis is on economic employment and the costs incurred in the United Kingdom can only form the basis of a presumption of economic employment in the United Kingdom, which is rebutted if it can be shown that the person remains outside the United Kingdom. However, it can be difficult to know exactly where the costs are incurred and who the economic employer is. The fact that there was a much greater chance that a person would be tax resident in the United Kingdom and that he would be established in the contract led to some changes to the agreement set out in Annex 4. What was a single category of visitors spending between 91 and 183 days in the UK has been divided into two groups and, from 2014/15, anyone who spends at least 151 days in the UK will have to apply on an individual designation basis. Several employers have approached the DRR about difficulties in the physical submission of their Schedule 4 reports. In this context, HMRC will accept reports by email. Reports and queries are sent to Contactexpat@hmrc.gov.uk with the 4 Reports app in the subject field. HMRC is aware of the long wait times employers have when trying to contact the expat helpline, so they are encouraged to email the team instead of using the phone service….