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

Employer notification for qualifying new residents

Section 690D allows employers to notify HMRC that they intend to exclude the foreign portion of employment income from PAYE for employees who are qualifying new UK residents working partly overseas.

• Employers may notify HMRC during the tax year that they propose to exclude the foreign proportion of qualifying payments from PAYE for an employee who is, or is likely to be, a qualifying new UK resident and who works or will work outside the UK during that year.
• The foreign proportion is the best reasonable estimate of the share of employment income that is likely to be qualifying foreign employment income, and the notice takes effect only once acknowledged by HMRC.
• A notice does not take effect if HMRC has already issued a direction under section 690E for the same employee and tax year, and it ceases to have effect if HMRC subsequently issues such a direction, or if a replacement notice under section 690D or section 690A is acknowledged.
• Excluding income from PAYE under this notice does not affect any subsequent tax assessment, nor any right to a repayment of overpaid tax or obligation to pay underpaid tax.

---