PAYE28040 - employer records: modified PAYE schemes: types of modified PAYE scheme
You may encounter various kinds of employer who operate a
modified PAYE scheme.
These are employers of
Employees seconded abroad
Expatriate employees (Tax Equalisation)
Market research interviewers
Members of the reserve or auxiliary forces
Employees seconded abroad
Some employees may work for a UK company but be seconded for a
period to an employer overseas. Both companies may pay part of the
employee's earnings. As there may be differences in tax years
between the UK and some overseas tax authorities the UK employer
may apply for a deferment of the deadline for reporting and the
payment of secondary NICs.
For 2006-07 onwards, to operate this modified NICs
arrangement employers must make an application under Employment
Procedures Appendix 7B.
Expatriate employees (Tax Equalisation)
An expatriate employee, subject to
Tax
Equalisation, is a foreign national who is sent to work in the
UK by his employer.
Where an expatriate employee is fully tax equalised, in
certain circumstances, the employer can apply to operate a modified
PAYE arrangement under Employment Procedures Appendix 6. As part of
this arrangement the deadline or submitting returns of expenses and
taxable benefits may be extended from 6 July to 31 January.
If an employer is authorised to operate this modified PAYE
arrangement, the employer may also apply, in certain circumstances,
to operate a modified NICs arrangement under Employment Procedures
Appendix 7A.
Market research interviewers
From 6 October 1988 PAYE is due on the earnings of market research interviewers. As this type of taxpayer may be employed by a number of companies a modified system of PAYE may be operated by agreement.
Reserve and auxiliary forces
A serving member of the forces is treated as an employed earner and present in the UK even if he is serving overseas. All taxable payments are subject to a modified form of PAYE. Code number BR or NT is operated in every case.
