PAYE28018 - employer records: modified PAYE schemes: expatriate employees EP appendix 6 arrangements from April 2006 (Action Guide)


Note: Employers who operate Modified PAYE for their tax equalised employees under an existing Employment Procedure Appendix 6 agreement, could continue to use this arrangement for 2006-07. They must however re-apply under the updated arrangements before 6 April 2007. Any modified arrangement in existence under the old procedures is regarded as ceased at 5 April 2007.

To deal with a request for authority to operate modified PAYE follow steps 1 - 7 below

For details of how to access any of the Employer Business Service functions use the [Index of Functions] button on the left of the screen.

Employer / agent request authority to operate modified PAYE

When an employer / agent contacts you to request authority to operate modified PAYE

  1. Advise the employer / agent to submit an application to operate modified PAYE under EP Appendix 6

Application to operate modified PAYE under Appendix 6 received

If you receive an application to operate modified PAYE under EP Appendix 6

  1. Forward the application to your associated Expatriate Team

Where the Expatriate Team return a copy of the application with the arrangement, take the following action

  1. Use ECS to check that the Class 1A indicator is set for the current year

  • If not set use ECS to set the Class 1A indicator
  • Make an entry in the employer-related electronic file ‘P11D(b) – Modified PAYE Schemes’ that an application for the new updated EP Appendix 6 has been approved
  • Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad
  • Use EBS Function Employer Notes to enter ‘EP Appendix 6 Modified PAYE in operation for Expatriate Employees from [enter date]’

Arrange for the transfer of the expatriate employee records, if requested by the Expatriate Team.

Note: Where the employer has requested a separate ‘Dedicated scheme’, your associated Expatriate Team will

  • Arrange for the creation and maintenance the separate scheme
  • Request transfer of the employee records, and the employer record where necessary

Annual review of the employer-related electronic file

  1. The employer-related electronic file must be reviewed to ensure that the NIC Settlement Return has been submitted

Action at April each year

  1. Review the list of employers in employer-related electronic file 'P11D(b) - Modified PAYE schemes'. In each case check

  • Whether a P11D(b) has been received for year CY-1
  • If it has been received in time then go to step 7

Or

  • If it has not been received request the P11D(b) then go to Step 6
  1. Forward the following details to the Penalty Officer to consider raising any penalties

  • Employer name
  • Employer PAYE reference
  • The Year the Nil P11D(b) was not received or received late
  1. Use Function VIEW BROCS Format 2 to check

  • Whether payment has been received by 31/01/CY
  • If payment has been received before 31 January then no further action is necessary

Or

  • If payment has not been received or was received after 31 January, contact Debt Management Office and advise them that interest will need to be calculated on all payments made after 19 April

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