Short Term Business Visitors (STBV): a clarification piece

07 January 2020

As HMRC reported in the October Bulletin, PAYE arrangements for employers with Short Term Business Visitors (STBVs) from overseas branches will be changing from 6 April 2020.

Towards the end of 2019, to prepare for the upcoming changes, a letter was circulated to companies that held an STBV special arrangement (PAYE81950) which would allow them either to apply to use the new special arrangement, commonly referred to as Appendix 8 or to cease their current PAYE special arrangement.

The letter included the statement ‘This application is to:’ and then offered two options with tick boxes alongside them. The options were:

  • Apply for a new Appendix 8 arrangement
  • Cease current PAYE special arrangement

It has been reported that there has been some confusion upon completion of these forms with some respondents placing a tick in both answer boxes. The guidance given is that employers need to select one or the other, as it would be impossible for both scenarios to apply. If the employer wishes to join the new arrangement, then they should tick the relevant box but if they don’t wish to join Appendix 8 then they should opt to cease the current PAYE special arrangement.

The upcoming changes mean that there will be an increase in the UK workday limit from 30 to 60 days and that the filing and payment deadlines will shift to 31 May 2021 for tax year 2020-2021 onwards, as opposed to 19 and 20 April respectively, each year. This applies when UK companies hire staff from territories in which there is no Double Taxation Agreement.

CIPP comment

The CIPP sits in on the Expat Forum and so would be interested in hearing any feedback or comments in relation to Appendix 8 or any experiences our members may have had in relation to letters of this nature. Alternatively, if there are any items you would like the CIPP to raise at the next Expat Forum, then please don’t hesitate to get in touch at [email protected].


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