Short Term Business Visitor Agreement Application

Before we go any further, let`s recognize that a PAYE obligation for a UK company is not created simply because a person from a related organisation travels to the UK on business, but only if such a person “works” for it within the meaning of s689 ITEPA in 2003. The HS302 support sheet provides additional information on dual domicile in general and the tests to be applied to determine the country of tax residence. This convention provides for an exemption from PAYE in the event of exemption under double taxation agreements (DBA). Since STBVs usually live in another country, the implementation of NICs requires a cross-border perspective. Normally, it is necessary to know whether national rules are applicable or whether rules apply in the context of certain agreements. As soon as an employer has information about who is traveling, they need to verify that compliance is triggered. This usually involves applying immigration, income tax, settlement and social security rules to travel data. This analysis could establish a risk report after the trip, which will show what happened and what may happen in the future if the data is extrapolated. Some systems offer a pre-travel assessment, which stops the travel process, while marked compliance measures are addressed. Once a PAYE obligation is accepted, host employers will want to identify persons who are exempt from UK tax under the provisions of a relevant agreement and for whom the PAYE obligation can be waived under a Schedule 4 agreement. Annex 4 applies where, as a general rule, the host employer, the UK establishment or the legal employer are required to make deductions FROM PAY. It applies only to workers who are not resident for tax purposes in the United Kingdom or who, if established in the United Kingdom, are a contract established in the contracting country.

In all cases where it is a short-term secondment of staff to the UK, the employer must set up some form of internal reporting system in order to keep an accurate record of employees visiting the UK on business. Employees must regularly declare the number of days they spend in the UK on business. In addition, over a 12-month period, workers should not spend more than 30 intermittent days in the UK without reporting it to their employer. . . .