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

Employer notification for internationally mobile employees

Section 690A allows employers of internationally mobile employees to notify HMRC that they propose to treat a proportion of uncertain payments as outside PAYE, beginning from the 2025-26 tax year onwards.

• Employers can notify HMRC during the tax year that a specified proportion of uncertain payments to an internationally mobile employee will be treated as not subject to PAYE.
• The notice takes effect once acknowledged by HMRC, but will not take effect if HMRC has already issued its own direction under section 690B for that employee and tax year.
• The notice ceases to have effect if HMRC issues a subsequent direction, the employer submits a replacement notice, or a qualifying new resident notice is submitted and acknowledged.
• The PAYE treatment under this notice does not affect the employee's final tax liability — any underpayment or overpayment of tax is still settled through assessment.