Employers who pay oversea tax on behalf of employees - late reporting reason added

04 March 2022

Following feedback from employers who engage with globally mobile employees, Her Majesty’s Revenue and Customs (HMRC) has updated guidance to allow late reporting of tax for certain circumstances.

Employers paying foreign tax on an employee’s behalf will be allowed up to one additional month to process PAYE and National Insurance contributions. This extension is given if the employer is unable to complete the required calculation in the usual RTI deadlines of “on or before payment”. This will only apply to globally mobile workers who remain tax residents in the UK.

Where this is applicable, employers are advised to use the late reporting reason code “G”, usually used for a “reasonable excuse”. HMRC’s full code description for the amendment is as seen below.

HMRC code


When to report


You are paying foreign tax on your employee’s behalf and it is taking longer than usual to calculate the PAYE and National Insurance contributions on that tax

As soon as possible and no later than one month after usual reporting date — select ‘Late reporting reason’ code G

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