London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Employers’ newsletter - Short Term Business Visitors (STBV)

Where employees of an overseas branch or an overseas group company come to work in the UK then the starting point is that they need to be paid though the payroll and, be subject to PAYE, even if they are to be only here for a short period.

This though is not necessary if they fall within the conditions of ‘EP appendix 4 criteria for short term business visitors’. This arrangement must only be applied where individuals are:

  • Resident in a country with which the UK has a Double Taxation Agreement under which the Dependent Personal Services / Income from Employment
  • Article (Article 15 or the equivalent) is likely to be competent; and
  • Coming to work in the UK for a UK company or the UK branch of an overseas company, or are;
  • Legally employed by a UK resident employer, but economically employed by a separate non-resident entity; and
  • Expected to stay in the UK for 183 days or less in any twelve month period.

The provisions rely on the company demonstrating that for specifically named employees whose presence in the UK is 60 days or more, the UK Company or branch will not in fact ultimately bear the remuneration specified. For those whose presence in the UK is 59 days or less, it is only necessary to show that the employees were paid via a non-resident employer’s payroll.

Where agreement is reached with HMRC that this applies and in all other aspects the employee falls within the guidelines, then that part of the remuneration not ultimately borne by the UK Company or branch can fall within this arrangement and PAYE disregarded

This arrangement, unfortunately, does not apply to STBV’s from overseas branches of UK companies and for those individuals who are not residents of a country with an appropriate tax treaty.

STBVs from overseas branches of UK companies, or from countries which do not have a Double Tax Treaty with the UK, can be included in a Special Annual PAYE Scheme. It does not though apply to non-resident directors of UK companies. This allows the UK employer (or host employer) to make a single annual payroll report shortly after the end of the tax year, rather than making payroll reports on a monthly real-time basis. However, Special Annual PAYE Schemes can currently apply only to individuals who have 30 or fewer UK workdays during a UK tax year.

It is proposed that from 6 April 2020:

  • The UK work day limit will extend from 30 to 60 days; and
  • The reporting and payment deadline will move back from 19 April to 31 May following the end of the tax year.

Both of these changes should be beneficial to employers.

If you would like any further advice on the PAYE arrangements for employees coming to work in the UK, please contact me.



Date: 27th March, 2019
Author: Cathy Corns


Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.


We maintain top 40 position in @AccountancyAge Top 50+50 Accountancy Firms 2019 rankings #Top40Accountants

Lisa Spearman to take part in CEO Sleepout which fights homelessness and poverty. To sponsor Lisa and to read more……



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn