Joint Forum on Expatriate Tax and National Insurance contributions

06 March 2017


Minutes from the last Expat forum have been published which include Personal Tax Account access and how the apprenticeship levy will apply for modified NIC arrangements.


Personal Tax Account (PTA) access

HMRC advised that for “expats” access to personal tax accounts was likely to be divided into two groups of people;

  1. Those who have lived in or had a presence in the UK and therefore have a footprint for example, a National Insurance number, bank account, residual HMRC records etc.

  2. Those who have never lived in the UK but for example, may be visiting for work.

HMRC explained that group 1 will be able to access their PTA just like anyone else, there is no restriction to logging in from abroad.

Group 2 will need to overcome some hurdles before they can access PTA for example, register for a National Insurance number, obtain a P60 from their employer, have a UK address.

HMRC explained that customers can access PTAs if they have (or can obtain) Government Gateway credentials. Customers have to be able to go through 2 factor authentication (code issued to their mobile or landline) and answer the questions about their identity. If they do not have any of that information then for non-UK passport holders there is scope to access their PTA through a service provider called Call Credit, which will be able to ask the individual questions about their financial information.

HMRC advised that people living abroad will only be able to use the repayment service developed in PTA if they have a UK bank account to which the repayment can be sent.


Q. Forum members asked if National Insurance numbers are required to get reliable information for PTA how will this impact on “expats” who do not have one.

A. HMRC confirmed that they were further considering this along with exploring other possible options. HMRC advised that they do not wish to build a system that is not appropriate or fit for purpose.

Q. Forum members raised concerns with the speed by which changes were taking place. Forum members also commented that for “expats” a lot of the information HMRC requires is outside of the UK.

A. HMRC noted forum members concerns and confirmed that they wanted to ensure the product is right before rolling this out to “expat” customers. It was agreed by all parties that a sub-group would be helpful to further discuss MTD.

Action Point - HMRC to organise a sub-group for Making Tax Digital for “expats”.


Modified PAYE Schemes and the Apprenticeship Levy


Q. Once the levy is paid and credited to the account is the time limit still 18 months for the money to be spent?

A. HMRC confirmed that this time limit has now changed to 24 months.

Q. There are concerns around adjustments. Once an adjustment is made how will this impact the funds in the levy account taking into account the 24 month time limit? Does this commence when the adjustment is made or at another time?

A. HMRC referred to two examples about offsetting refunds against other PAYE liability. Forum members advised that the examples do not reflect a normal PAYE modified scheme. This is because a modified scheme mostly involves payrolling benefits and almost all individuals will have apportionment benefits, which will bring out the Class 1 NICs. HMRC explained that the examples were to illustrate the main point however noted the comments. HMRC advised that they would review the examples to see if they can be enhanced to better reflect the position in these types of cases.

Action Point – HMRC to review the two examples and see if they can be updated.


Q. If the figure changes how does this affect monies that might have been spent?

A. This will only be an issue if near the threshold boundaries. If more levy is payable the clock would start from the paper being amended however, HMRC will check and clarify the position.

Action Point – HMRC to check if the figures change how this affects the monies that might have been spent.


Topics also under discussion:

  • Salary sacrifice

  • Short Term Business Visitors (STBVs)

  • National Insurance Contributions

  • Making Tax Digital.

Read the minutes from the meeting held on 27 October 2016.

Minutes from previous meetings are also available.