UK Short Term Business Visitor (STBV) reporting
Any UK entities receiving non-UK resident employees who are working for the benefit of the UK business have a strict obligation to operate PAYE on that employee’s earnings from Day 1, unless they have formally entered into a Short Term Business Visitor Agreement (STBVA) with HMRC.
Once entered into this agreement, employers must track their STBVs to the UK and file an annual report with HMRC by 31 May following the end of each tax year. For STBVs who meet the conditions to be exempt from UK income tax under a double tax treaty, the obligation to withhold PAYE is relaxed. Depending on the time spent in the UK, each STBV must instead be included on the annual report filed with HMRC.
We can assist you by:
- Making an STBV application on your behalf to HMRC
- Assisting you in implementing a suitable internal process (and policy, if required) for tracking and collating the data required for year-end reporting
- Assessing STBVs on a case-by-case basis as to whether tax treaty exemption is applicable and payroll treatment if not
- Year-end STBV reporting
Training can also be provided to inhouse employees to allow for STBV tracking and reporting to be undertaken internally.
Non-Resident Directors (NRDs)
An increasing area of HMRC scrutiny due to frequent non-compliance and publicly available information on Companies House. It is commonplace for non-resident statutory directors of UK companies to be explicitly excluded from benefitting from exemption under a double tax treaty for any board duties performed in the UK. Where an NRD has a wider role within the business and is not separately remunerated for board duties, a percentage of their total compensation and benefit package can be inadvertently taxable (and subject to PAYE in the UK). UK National Insurance (NIC) may also be due.
We can assist you by:
- Assessing on a case by case basis whether treaty exemption is available or PAYE/NIC is due
- Planning to mitigate income subject to UK income tax and PAYE/NIC
- Payroll and tax return compliance for any NRDs subject to UK income tax
Cross Border Workers/Commuters
With the rise of remote working, it is now commonplace for employees to live in one country and be employed and work in another, or split duties between where they live and where they are employed. In some industries, it is also common for employees to ‘commute’ to their workplace in another country on a weekly basis and return home for the weekend. While providing flexibility for employees, this can create compliance headaches for the employer and potential dual-withholding obligations.
How we can help:
- Analysis of tax, social security and payroll implications of each case and guidance, including any planning, to mitigate costs and administration
- Assistance with payroll compliance in each country, including any steps to mitigate any dual-withholding obligations
- Year-end tax return compliance
- A1/Certificate of Coverage applications for social security purposes
