P46 (EXPAT) Update – What Do They Know?

When an employer takes on a new employee in the UK then they should
submit one of the following forms to HMRC:
P45 Part 3 - When a new employee starts
P46 - When a new employee starts, but has no P45 from their
previous employer
P46 (Expat) - For certain employees seconded to work in the UK

At the February meeting of the Expats Forum, HMRC advised that the emergency code, rather than code 0T, would continue to apply for expatriate employees for whom P46(Expat) is appropriate, where: -
•    The employee does not provide Parts 2 and 3 of Form P45;
•    The employee does not complete and sign form P46; or
•    The employee does not provide the employer with the information required by Form P46 by an alternative method.

Citylights Payroll Services bring you an update from HMRC for your information:
“This was based on our understanding at the time of the effect that the amendments to the Income Tax (PAYE) Regulations 2011 would have. These amendments were laid on 11 March 2011 and they make clear that Code 0T will apply where Form P46(Expat) is not completed and signed by the expatriate employee or the relevant information is not supplied by other means to the employer by the expatriate employee.

In a situation where an expat employee is entitled to personal allowances and are given a 0T code, we will reinstate those allowances as soon as we receive the P46(Expat). If there any problems in providing the P46 (Expat), PTI Manchester will endeavour to get the code amended by telephone. Please note that in these circumstances, Code 0T is operated on a non cumulative basis.”

If you need more help with your Employer Legislation or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel   0844 576 33 08
Fax   0844 556 12 72
Email: scott@citylightspps.com