FAQ: Residence and domicile PAYE (Pay As You Earn)

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Is it true section 690 ITEPA directions for Not Ordinarily Resident (NOR) employees have been withdrawn from 2008-09?

No, the legislation has been amended to allow directions to continue to be given and for existing directions to continue without waiting for a claim to remittance basis being made.

As an employer, am I expected to identify which of my employees are claiming the remittance basis and remove their personal allowance through PAYE for 2008-09?

No. In 2008-09 anyone who wishes to claim the remittance basis will need to complete a Self Assessment tax return. HM Revenue & Customs (HMRC) will be discussing with employers and representative bodies whether for 2009-10 and later years it would be advantageous to deal with some remittance basis claims through the PAYE system.