If the conditions are met, a UK employer in the UK may ask HMRC not to exploit PAYE on the income of business travellers in the short term. It is called the Short-Term Business Visitors Contract (STBVA) or the Schedule 4 agreement. Once a pay obligation has been adopted, invited employers will want to identify individuals who are exempt from UK tax under a relevant contract and for whom the PAYE obligation may be removed by the application of a Schedule 4 agreement. Second, the agreement is now explicitly aimed at not applying to persons employed in non-British branches of a British company. The reason was that, in this scenario, people were eventually employed by a British employer; As a result, compensation could not be borne on behalf of a non-British employer, as required by the article on income from work, and the exemption from the contract could never be taken into account. Regardless of what is said above, where costs must be borne, it is also possible to apply for a particular worker to be registered in a Schedule 4 agreement, although its costs are borne in the United Kingdom, provided it can be shown that it is economically employed outside the United Kingdom. These applications must be submitted on a case-by-case basis by employers before workers can be covered by the Schedule 4 agreement, so that the old OECD standard test (where costs are effectively borne) and the new review (to which the person is economically employed) are effectively applied before a contract exemption is allowed. However, the emphasis is on economic employment and the costs incurred in the UNITED Kingdom can only lead to a presumption of economic employment in the United Kingdom, which is refutable if it can be shown that individuals remain economically occupied outside the United Kingdom. However, it can be difficult to determine precisely where the costs are borne and who is the economic employer. Simply put, employers with STBVVs should enter into a STBV agreement as soon as possible and there is still time to apply for a STBV contract and submit an annual report for fiscal year 2019/20.
We recommend that all companies that regularly send staff to the UK enter into written agreements with their employees in order to gather the necessary information. We can provide such agreements on request. Hmrc offers two facilities to the starting position that applies on request (a special Pay Agreement and a Schedule 4 STBVA agreement); they can only be used if an employer has received express authorization from HMRC.