Outbound employees ― payroll issues

Produced by Tolley in association with and Steph Carr of BDO LLP

Employment Tax

Guidance

Key points

•
the default position for individuals leaving employment under the RTI regime is to include their date of leaving in the FPS submission and provide the employee with a form P45
•
for employees leaving their UK employment to start overseas work under a new employment con-tract with an overseas entity, or for individuals transferring to a new payroll scheme within the UK, they should be marked as leavers in the same way as the basic position.
•
where an employee will remain on UK payroll but is expected to perform all of their employment duties overseas, a No Tax (NT) code can be applied for from HMRC in order to exempt their earnings from PAYE
•
where an employee will continue to have some UK employment duties but will otherwise be expected to be non-resident in the UK, a s 690A (up to 2024/25, this was s 690) arrangement can be put in place with HMRC in order to restrict PAYE to portion of their earnings in

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Nicole Caraglia

Tax Manager, BDO LLP , Employment Tax, Global Mobility

Nicole is a Tax Manager within BDO London's Global Employer Services tax team. She has specialised in expatriate tax for 10 years, working in a Big 4 and a much smaller professional services firm before joining BDO in 2021.She has worked with a variety of clients, ranging from individuals and start up companies to global corporations with large global mobility programmes.She has experience in assisting clients with their global mobility programmes as well as regular consulting around assignment planning, remote working arrangements, employment taxes, social security and expatriate payroll operation.Nicole has contributed to TolleyGuidance in Employment taxes.

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