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

Direction by HMRC in relation to internationally mobile employees

Section 690B gives HMRC the power to override an employer's notice regarding the proportion of an internationally mobile employee's pay that is excluded from PAYE, and to issue its own direction specifying a different proportion or requiring PAYE to apply to the full amount.

• Where an employer has given a notice under section 690A during the mobile tax year excluding a proportion of an employee's uncertain payments from PAYE, HMRC can intervene if it considers the specified proportion to be incorrect.
• HMRC may direct that a different proportion of uncertain payments should be excluded from PAYE, or that the full amount should be subject to PAYE with no exclusion at all.
• The direction must identify the employee and the mobile tax year, must be sent to the appropriate person, takes effect immediately when given, and can be varied with at least 30 days' notice.
• The direction ceases to have effect where the original notice was based on expected non-UK residence but the employee subsequently qualifies as a qualifying new resident and HMRC has acknowledged the updated notification under section 690D.