Short Term Business Visitor Deadline
What is a Short Term Business Visitor Agreement (STBVA)?
There are certain payroll (PAYE) rules in place regarding short business visitors to the UK. Unless you have a Short Term Business Visitor Agreement, as an employer you must operate a full UK payroll on earnings for short term business visitors who work with you. This applies to any UK organisation with 'business visitors' (employees of an overseas subsidiary. Parent or group that have come to temporarily work in the UK).
Where previously, organisations were able to determine for themselves whether or not a worker should be subject to PAYE, HMRC have now withdrawn this option.
What is the deadline?
Where a STBV scheme is used the UK company must implement a system to track overseas business visitors. A report must be made to HMRC by 31st May 2018 following the end of the tax year detailing any business visitors that have 30 days in the UK. More information is required the more days a business visitor has spent in the UK. A certificate of residence may have to be obtained from the overseas tax authority. Further information on the precise disclosure requirements can be provided if required.
It should be noted that if any visitor is expected to spend 150 days in the UK an application on a named basis must be made for them to be included in the STBV scheme. They will need to justify why they believe they remain treaty resident outside the UK.
Where there is no STBVA already in place (short term business visitors agreement), PAYE must be operated for every individual visitor regardless of whether UK tax will actually be due. Any employer not operating in this way is at risk of being charged penalties for non-compliance.
It is therefore advisable to obtain agreement from HMRC to operate a relaxation of the payroll rules on an annual basis to minimise the need to operate a payroll for any potential short term business visitors.