Inbound secondment ― payroll issues

Creating an employment record

Where the employee of an overseas employer is seconded to the UK, the employee will be either resident or non-resident in the UK. See the Residence and domicile ― effect on tax liability guidance note. A seconded employee includes individuals:

1. •

   working wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer

2. •

   assigned to work wholly or partly in the UK at a recognised branch of their own employer’s business

3. •

   who are included by an employer within a dedicated expatriate scheme or an expatriate EP6 (modified) PAYE scheme ― see the Modified payrolls for inbound employees guidance note

The following information must be included on a seconded employee’s payroll record. Under Real Time Information (RTI), the Full Payment Submission (FPS) report sent to HMRC includes the employee’s full name, date of birth, gender, address at which the employee will reside when in the UK and National Insurance number, if known. Although not a mandatory field for overseas employees on UK secondment, HMRC encourages employers to report the passport number as a one-time event. The passport number will be used to help identify the employee and help prevent multiple records from being set up for an employee on HMRC’s National Insurance and PAYE Service (NPS).

On the first FPS sent to HMRC for a seconded employee, it is necessary to indicate ‘yes’ to whichever of the following apply (otherwise leave the data field blank):

1. •

   the