18 May 2018
In May 2017, we highlighted that it is common for overseas employees of international businesses with UK operations to visit the UK for short-term business trips, and that the UK business receiving such visitors may have income tax and National Insurance Contributions (NIC) obligations in respect of such employees from day one of the visit.
For tax purposes, a potential way of managing this PAYE obligation is to enter into a Short-Term Business Visitors Arrangement (STBVA) with HMRC. In certain circumstances the STBVA can remove the need for the UK business to operate PAYE. NIC will, however, need to be considered separately.
Employers that have entered into a STBVA for the 2017/18 tax year must submit their report to HMRC by 31 May 2018. HMRC expects to receive a report even where there were no reportable short-term visitors during the tax year.
We recommend that any businesses with short-term business visitors to the UK, read the article 'Are you compliant with your short term business visitors from overseas?' for more information.