04 May 2011

At the February meeting of the Expats Forum, HMRC advised that the emergency code, rather than code 0T, would continue to apply for expatriate employees for whom P46(Expat) is appropriate, where:

· the employee does not provide Parts 2 and 3 of Form P45;

· the employee does not complete and sign form P46; or

· the employee does not provide the employer with the information required by form P46 by an alternative method.

This was based on their understanding at the time of the effect that the amendments to the Income Tax (PAYE) Regulations 2011 would have. These amendments were laid on 11 March 2011and they make clear that Code 0T will apply where form P46(Expat) is not completed and signed by the expatriate employee or the relevant information is not supplied by other means to the employer by the expatriate employee.

In a situation where an expat employee is entitled to personal allowances and are given a 0T code, HMRC will reinstate those allowances as soon as they receive the P46(Expat). If there any problems in providing the P46(Expat), PTI Manchester will endeavour to get the code amended by telephone.