News & Insights

Back to News & Insights Archive

Short Term Business Visitors to the UK and PAYE

17th April 2014

HM Revenue & Customs (HMRC) has tightened the rules for payroll reporting for UK employers with non-UK resident employees working for them in the UK for short periods (Short Term Business Visitors (STBVs)). Management of STBVs is an area of tax administration which is frequently overlooked or misunderstood by employers. HMRC has therefore removed some of the previously agreed relaxations to the rules with effect from the 2013/14 tax year. 


Previously, a UK employer had three choices:

  • enter into a standard written agreement with HMRC (an “Appendix 4” agreement) and benefit from PAYE relaxations in return; or 
  • “self-assess” as to when the employee’s remuneration is relieved from UK tax through the operation of a double tax treaty and only apply PAYE where treaty relief is not available, or
  • apply PAYE to all earnings attributable to UK duties, whether or not relief is available under a treaty. 

Employers now have two options, as the ability to “self-assess” has been removed:

  • operate PAYE on all earnings attributable to duties undertaken in the UK from day one; or 
  • apply for a STBV Agreement before the end of the relevant tax year and submit the STBV report to HMRC by 31 May following the end of the tax year. 

Where an agreement is in place, the employer will not be required to report visits of less than 30 days per year. 

Contact Katharine Arthur for further details and for assistance in deciding whether you should apply for an agreement for 2014/15.