Guidance

General information regarding pay on transfer from other government departments to HMRC

Updated 1 April 2022

HMRC will pay from the first day in the post. Exporting departments will pay the employee until the date of transfer; if this falls on a Friday the exporting department should pay until the Sunday. Employees should not start their new role in HMRC until the payroll transfer is confirmed and HMRC are in a position to pay the individual.

Basic pay

1. HMRC has 2 pay range locations for each grade: London and National. Each grade’s pay range has a minimum and maximum rate, without any “spine points”.

2. With the exception of London Weighting (or equivalent), allowances are not transferrable to HMRC and all other allowances are lost on transfer.

Level moves (voluntary)

1. If your department currently pays you on its National pay range, your basic pay, excluding any specialist payments or allowances, will move across to HMRC’s appropriate National pay range for your grade. If this falls below HMRC’s National pay range minimum for your grade it will be uplifted to the minimum for your grade. However, if this is above the maximum, it will be capped at HMRC’s maximum for your grade.

2. If your department currently pays you on its London pay range, your basic pay, excluding any specialist payments or allowances, will move across to HMRC’s London pay range for your grade. However, if you are in receipt of a London Weighting allowance or equivalent, this amount will be consolidated into your basic pay before being moved across to HMRC’s London pay range (paragraph 3 outlines how any uplifts or capping will be done).

3. If your basic pay (including London weighting but excluding any specialist payments or allowances) is greater than the equivalent HMRC grade range maximum. Any value above HMRC’s maximum may be retained on a Mark Time basis and will be eroded by any future basic pay increases.

4. If your move to HMRC involves a change in pay location into or out of the HMRC London pay area, your basic pay in your current department will be transferred across to the equivalent HMRC pay range for that location (as explained paragraph 3 and 4). Your pay will then be moved to the equivalent pay rate for the new location. Please refer to the Equivalent Position calculation below.

5. Some departments have offices where the boundaries do not align with HMRC’s National / London pay boundaries. The process outlined in the Equivalent Position calculation below of moving your basic pay to the equivalent position for the correct HMRC location will be carried out after moving your present pay to an aligning HMRC office classification. For example, your office in your current department may be classified as London but is regarded as National within HMRC. Your basic pay will be transferred to HMRC’s London range before moving across to the equivalent position on HMRC’s National pay range.

6. If you are moving from a London area within your current department to a National area in HMRC, there is a possibility of a decrease in pay.

Equivalent position calculation

The equivalent position calculation is used when moving between National and London pay ranges. It maintains the relative position of your basic pay in the pay range, on transfer to the new pay area.

Equivalent position formula:

((A / B) x C) + D = New basic pay on move, where:

A = New pay range maximum minus new pay range minimum
B = Old pay range maximum minus old pay range minimum
C = Current basic pay minus old pay range minimum
D = New pay range minimum

Specialist pay

If you are on a specialist pay range due to your role in your current department, your pay will be adjusted to the equivalent generalist pay range position for your location in your current department using the above processes.

Promotion moves to HMRC

Your current basic pay will be moved across to the equivalent pre-promotion HMRC grade pay range following the processes outlined above. If your pre-promotion salary exceeds HMRC’s pay range maximum, your pay will be capped at our maximum. You will then receive the better of:

• an uplift of 10% of this basic pay, capped at the HMRC pay range maximum
• the minimum of HMRC’s pay range for the grade you have been promoted to

You should note that your pay on promotion may be less than 10%, if for example you are currently paid from a higher specialist pay range which is higher than HMRC’s pay ranges which are generalist. This is because basic pay will be capped at HMRC’s pay range maximum.

Basic Pay Award (from 2019)

Transfers will receive the pay award according to the matrix below where appropriate. Depending on the exact date of your transfer to HMRC, you may be eligible for either HMRC’s or your exporting department’s pay awards.

This will exclude any increases for pay restructuring or contractual buy-out by your old department. If details cannot be obtained and you meet all other Pay Award Criteria, you will receive HMRC’s award.

Any award will be paid from 1 June or your take up duty date (with backdating if required), whichever is later.

From exporting department (performance year references if applicable to exporting department)

Date of transfer	More than 3 months before the end of their performance year and before settlement date	Less than 3 months before the end of their performance year and before the settlement date	After their performance year but before the settlement date	On settlement date	After settlement date
Before 31 December	HMRC’s pay award will be applied	HMRC’s pay award will be applied	HMRC’s pay award will be applied	You will receive the award of your exporting department	You will have received your exporting department’s pay award. Pay on transfer will be based on HMRC’s new pay range, you will receive HMRC’s pay award in the next cycle
Between 31 December and 31 March	HMRC’s pay award will be applied	HMRC’s pay award will be applied	HMRC’s pay award will be applied	You will receive the award of your exporting department	You will have received your exporting department’s pay award. Pay on transfer will be based on HMRC’s new pay range, you will receive HMRC’s pay award in the next cycle

From exporting department (performance year references if applicable to exporting department)

Date of transfer	More than 3 months before the end of their performance year and before settlement date	Less than 3 months before the end of their performance year and before the settlement date	After their performance year but before the settlement date	On settlement date	After settlement date
Between 1 April and 31 May	HMRC’s pay award will be applied	HMRC’s pay award will be applied	HMRC’s pay award will be applied	HMRC’s pay award will be applied	You will have received your exporting department’s pay award. Pay on transfer will be based on HMRC’s new pay range, you will receive HMRC’s pay award in the next cycle
On or after 1 June and before 31 December	Pay on transfer will be based on HMRC’s new pay range. Will receive HMRC’s pay award in the next cycle	You will receive the award of your exporting department	You will receive the award of your exporting department	You will receive the award of your exporting department	You will have received your exporting department’s pay award. Pay on transfer will be based on HMRC’s new pay range, you will receive HMRC’s pay award in the next cycle

Further information

If you feel your situation regarding pay is not covered in the above or if you have any questions concerning your prospective pay on transfer please contact HMRC recruitment.