½Û×ÓÊÓƵ

Non-resident employers and liability to PAYE in the UK

Produced by Tolley in association with
Employment Tax
Guidance

Non-resident employers and liability to PAYE in the UK

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Introduction

In some situations, an employee of a non-UK employer may be subject to UK Pay As You Earn (PAYE) tax and / or national insurance contributions (NIC) withholding while they spend time working in the UK. Simply having a non-UK contractual employer does not automatically mean that PAYE does not need to be operated.

Liability to withhold UK income tax

UK-based businesses are legally bound to pay their UK employees via PAYE if any of their employees earn more than the lower earnings limit (LEL) (see the Overview of NIC Classes, rates and thresholds guidance note for rates), if the employee

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Gill Salmons
Gill Salmons

Director at Global Eyes Tax Services Limited


I am a member of both the CIOT and ATT and have over 15 years' experience of working with expatriate populations, working inside and outside the Big 4 but mainly in the mid-tier.My clients have included household names as well as much smaller businesses, with expatriate populations as small as 1 or as large as 650+. Each size of business has its own challenges, which is what makes this work interesting; the cultural aspect to working with individuals from around the world cannot be overlooked! I have experience in general employment tax work, including elements of UK and international payroll as well as expatriate tax issues, and have also spent considerable amounts of time dealing with National Insurance matters for inbound and outbound assignees.

Powered by
  • 20 Mar 2025 15:52

Popular Articles

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more Read more

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more Read more