PAYE81520 | PAYE operation: international employments: globally mobile employee PAYE notification - further notification

Sections 690A & 690D ITEPA 2003

After a globally mobile employee (‘GME’) PAYE notification has been made for a tax year, the employer may recognise that there has been a change in the employee’s circumstances.

For example, during the year it may become apparent to the employer that the proportion specified in their notification is no longer correct, or that the employee’s residence position for the tax year will not be what the employer had originally expected.

An employer may, at any time, submit a new notification should they believe that the proportion specified on the existing notification is not appropriate. If, however, there is a significant change in the employee's circumstances such that the notification in place does not reflect a reasonable estimate of the amount of the overall non-PAYE proportion of the respective payments under section S690A or 690D, then the notification will no longer have effect.

A further notification may not take effect if HMRC has previously issued a GME PAYE direction in relation to the employee for that tax year. If HMRC has issued no such direction then the initial notice will cease to have effect and the new, updated notification will take effect on acknowledgement of the notification. If the employer considers that the proportion specified in the direction should be varied, they can ask HMRC to consider issuing a revised direction.

If a direction has been issued by HMRC following the making of a GME PAYE notification, and there is a change in an employees working pattern that significantly alters the amount of income that is determined not to be PAYE, but the provisions under which the notification is made is unchanged, then the employer or appropriate person will need to contact HMRC through their normal routes.

The final tax position of the employee will be determined, with any tax over or underpaid calculated, when they file their Self Assessment return at the end of the tax year.

There is more information on GME PAYE directions issued by HMRC and how it may affect a subsequent notification made by an employer see PAYE81521.