Income Tax (Earnings and Pensions) Act 2003 section 690E

Direction by HMRC in relation to qualifying new residents

Section 690E gives HMRC the power to override an employer's notification regarding how much of a qualifying new resident's pay should be excluded from PAYE, and to issue a direction specifying a different proportion or requiring PAYE to apply to the full amount.

• Where an employer has given a notification under section 690D during the qualifying year, HMRC can intervene if they believe the proportion of pay excluded from PAYE is incorrect.
• HMRC may direct that a different proportion of qualifying payments should be treated as outside PAYE, or that the full amount should be subject to PAYE.
• Any direction must name the employee and the qualifying year, be given by notice to the appropriate person, and can be varied with at least 30 days' notice; the direction takes effect immediately when given.
• The direction ceases to have effect if a subsequent notification is made under section 690A on the basis the employee is or is likely to be non-UK resident for the qualifying year, and HMRC have acknowledged that notification.

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