Short-term business visitors (STBVs)

Produced by Tolley in association with Gill Salmons

The following Employment Tax guidance note Produced by Tolley in association with Gill Salmons provides comprehensive and up to date tax information covering:

  • Short-term business visitors (STBVs)
  • What is a short-term business visitor?
  • Eligibility for an Appendix 4 or Appendix 8 arrangement
  • STBV ― Appendix 4 arrangement
  • STBV Appendix 4: less than 183 days in the UK
  • STBV Appendix 4 ― place of economic employment
  • STBV Appendix 4 ― PAYE and real time information (RTI) obligations
  • STBV ― Appendix 8 arrangement
  • STBV Appendix 8: less than 60 UK workdays
  • STBV Appendix 8 ― PAYE and real time information (RTI) obligations
  • More...

Short-term business visitors (STBVs)

What is a short-term business visitor?

An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK.

There is a common misconception that there is automatically neither a UK tax liability, nor are there any reporting requirements for the UK host employer in such circumstances. This is rarely the case. The PAYE obligations in respect of the STBV depend on whether an Appendix 4 or Appendix 8 arrangement is agreed with HMRC.

However, if an employer has only one or two employees potentially affected by the STBV rules, then it may be administratively easier to consider applying for an NT (no tax) PAYE code on an individual basis instead.

Eligibility for an Appendix 4 or Appendix 8 arrangement

There are two arrangements that can be agreed with HMRC for short term business visitors (STBVs): Appendix 4 and Appendix 8.

Appendix 8 applies for eligible STBVs from 6 April 2020 and replaces the special arrangement that an employer could agree with HMRC to account for STBVs with less than 30 UK workdays in the UK. The Appendix 8 arrangement is broadly the same as its predecessor ‘special arrangement’, except that it extends the eligibility requirements to STBVs with less than 60 UK workdays in a tax year.

Any STBVs who meet the conditions for an Appendix 4 arrangement should be reported under that arrangement.

Eligibility requirements

Appendix 4 applies to short-term business visitors who are:Appendix 8 applies to Short Term Business Visitors (STBVs) who:
– expected to stay in the UK for 183 days or less in any 12-month period– have UK workdays in the tax year of 60 days or less
– 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

Popular documents