ASSIGNEES THAT HAVE NT TAX CODES AND RETURN TO THE UK
03 August 2010
In light of the removal of form P86 from 1 June this year, a question was raised in respect of the procedure employers and individuals should adopt to inform HMRC of this situation.
Your member representative, Valerie Woodland, who attends the HMRC Expats forum on behalf of members and the Policy team, posed the question at last week's forum. The response recieved was; employers and individuals should write a letter to HMRC, Manchester Expatriate Team, 3rd Floor, Trinity Bridge House, 2 Dearman's Place, Salford, Manchester, M3 5BG, informing them of the employee's return to the UK and to request a correct tax code urgently. It was also confirmed that HMRC has no intention of replacing form P86. Valerie was informed that this guidance will be published in the revised edition of HMRC6 that is expected to be released shortly.
In a past edition of NOL we published the current related guidance provided by HMRC; however the previous guidance that discussed the use of form P46 for employees who return from abroad, no longer applies as the practice is causing the HMRC system confusion!
A final point of interest, the final paragraph in section 123 of the current CWG2 refers to non resident employees who have never been resident in the UK for whom a P46 is still appropriate should they become liable to UK income tax. We appreciate this concept as the individual will not have previously been liable to UK income tax and will not be known to HMRC and so should not be compared with the above guidance relating to an employee who has been previously a tax resident, achieved an 'NT' status but then returns to the UK.