Appendix 4 reporting deadline has been extended

26 May 2020

HMRC recently advised that it has extended the reporting deadline for Appendix 4 from 31 May to 31 July. Due to the current COVID-19 pandemic, HRMC recognise that processors may have limited resources and are experiencing complications meeting the original deadline in place. Guidance has been updated to reflect this temporary extension and details will also be published in the next employer bulletin.

Several employers have contact HMRC regarding difficulties in physically filing their Appendix 4 reports. Considering this, HMRC will be accepting the reports via email. Reports and enquires are to be sent to [email protected] , quoting App 4 Reports in the subject field. HMRC are aware of the long waiting times employers are having when attempting to contact the Expat Helpline, therefore are being encouraged to email the team rather than using the telephone service.

What is an Appendix 4?

Employers may apply for a relaxation to the strict PAYE requirements for those employees who are classed as a short-term business visitor. This arrangement provides an agreement that PAYE can be disregarded in certain circumstances.

Employers must only apply for this arrangement whereby the employees are:

  • Resident in a country with which the UK has a Double Taxation Agreement under which the Dependent Personal Services / Income from Employment Article (Article 15 or the equivalent) is likely to be competent

  • Coming to work in the UK for a UK company or the UK branch of an overseas company, or are

  • Legally employed by a UK resident employer, but economically employed by a separate non-resident entity

  • Expected to stay in the UK for 183 days or less in any 12-month period

It must be shown that for those employees specifically named, who’s presence in the UK is for 60 days or more, that the UK company or branch will not ultimately bear the remuneration specified.

Where there is an agreement reached and in all other aspects the employee falls within the guidelines, then that part of the remuneration not ultimately borne by the UK Company or branch can fall within this arrangement.

Arrangements will not apply where the expense of the remuneration is passed on to another UK Company or branch and not recharged overseas.

If an employee’s presence in the UK is for 59 days or less, it is only necessary to show that the employees were paid via a non-resident employer’s payroll.

The arrangement must not be applied whereby an individual is employed by a UK resident employer, including an overseas branch of a UK resident employer, except where the individuals are sent abroad to work for a separate non-resident entity and return to perform duties in the UK solely for that non-resident employer. Such individuals are not covered by the 60-day rule.

If an employer has only one or two employees potentially affected, they may like to consider applying for an NT code on an individual basis instead.


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