Modified payrolls for inbound employees
Employment Tax
Guidance
STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.
A seconded employee for PAYE purposes includes all individuals included by an employer within an expatriate modified PAYE scheme.
What is a modified PAYE scheme?
A modified PAYE scheme is suitable for expatriate employees sent by an overseas employer to work in the UK who are covered by a tax equalisation scheme 鈥� see the Tax equalisation guidance note. Tax equalisation generally describes an arrangement where an employer agrees to pay a foreign national employee working in the UK a specified net amount of cash earnings and non-cash benefits. With tax equalisation, the employer undertakes to meet on the employee鈥檚 behalf any additional UK tax payable above
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+鈩�
Related documents:
Related documents:
Popular Articles
Personal Tax
Losses on shares set against income
Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note
Corporation Tax
FRS 102 鈥� tax presentation and disclosures
FRS 102 鈥� tax presentation and disclosuresPresentation of tax under FRS聽102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in
Exemption 鈥� insurance 鈥� overview
Exemption 鈥� insurance 鈥� overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance 鈥� specific transactions and Exemption 鈥� insurance 鈥� brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of
