PAYE81514 - PAYE operation: international employments: Internationally mobile employees - PAYE notification
Section 690A ITEPA 2003
From 6 April 2025, where an employee is internationally mobile for a tax year (see PAYE81513), section 690A allows the employer, or a person designated by their employer, to notify HMRC that they propose to treat a specified proportion of any uncertain payment as not being PAYE income (see PAYE81513 for more information about uncertain payments). This means that once HMRC has acknowledged receipt of a valid notification the employer will only be required to operate PAYE on part of the income paid to that employee.
Where a valid notification is made, it has effect from the date that HMRC acknowledge receipt of the notification and allows the employer to only operate PAYE on the proportion of any uncertain payment which is expected to relate to UK duties.
The proportion specified in the notification should be the proportion of the employee’s income which the employer expects to relate to duties performed outside the UK at the time the notification is made.
This means that if an employer makes a notification specifying 20% of any uncertain payment to be treated as not being PAYE income, if they make an uncertain payment of £100,000, they would be required to operate PAYE on £80,000.
However, if there was no uncertainty, for example the employer had determined that either the payment was wholly PAYE income, the payment was wholly non-PAYE income, or only 50% of the payment was PAYE income, then the notification would have no effect and the employer should operate PAYE on the PAYE income paid.
Where a notification is made under section 690A for a tax year, the employee will need to file a Self-Assessment tax return for that tax year.
Where a notification has been made under section 690A, HMRC can issue a direction under section 690B specifying a different proportion to that included in any notification made by the employer, which will then have effect in relation to any subsequent uncertain payment made during the tax year (see PAYE81520).