PAYE81560 - PAYE operation: international employments: applications under Section 690 ITEPA 2003 - reviewing the application

Arrivals in the UK

When an application is accepted, you must take the following action

  • Set up an SA record for the employee if there is not one already (use SA, not NPS to create the SA record)
  • Arrange for an SA return with the non-residence and employment pages to be issued for the year(s) the application covers
  • Make an SA note as follows ‘Sec 690 approval given for [year] for earnings from [employer’s name]. PAYE to be operated on [%].’
  • If the employee is resident / not ordinarily resident, the remittance basis applies and the requirements of Section 26A ITEPA are met (a three year period of non residence) amend their tax code to remove the basic personal allowance (and blind person’s allowance if claimed)
  • Place all the Section 690 papers in an SA Post batching range

The steps to review an application under Section 690 are below. There are draft letters you should use depending on the circumstances of the case. These letters are available on SEES Forms and Letters, in the general subdirectory ‘Regulation / Payment letters’.

Is the application for S690 Direction (go to 1 below) or for an Informal Treaty Relief Direction (go to PAYE81561)

1. Is it clear the Section 690 application has been made by the employer or employer’s representative?

Yes – Go to step 2

No – Tell the applicant that you cannot accept the application using the SEES letter EXP12 Section 690 application

2. Are you content that the employer can be satisfied that the employee has met the conditions of

  • Resident, not UK domiciled and entitled to Overseas Workday Relief or
  • Not Resident in the UK or
  • Resident, entitled to split year treatment and the earnings covered by the application are for the overseas part of the tax year, or
  • Resident but Not Ordinarily Resident for 2012 to 2013 and entitled to Overseas Workday Relief under the transitional provisions? (You may have to look at the latest SA Return to help you with these points)

    Yes – Go to step 3
    No – Tell the employer that you cannot approve the application using the SEES letter EXP12 Section 690 application

3. Does the application include all the following?

  • The employee’s name(s)
  • The employee’s National Insurance number(s)
  • The tax year(s) to which it relates – (Note: It cannot be made for previous years)
  • A stated proportion of work done in the UK
  • Confirmation that employee(s) is / are to the satisfaction of the employer(s)

(a) Resident, not UK domiciled and entitled to Overseas Workday Relief, or
(b) Not resident, or
(c) Resident, entitled to split year treatment and the earnings covered by the application are for the overseas part of the tax year, or
(d) Was Resident but Not Ordinarily Resident for 2012-13 and is entitled to Overseas Workday Relief under the transitional provisions

Yes – Go to step 4

No – Ask the employer for the missing information using the SEES letter EXP12 Section 690 application

4. Are the individual’s SA tax affairs up to date?

Yes – Accept the Section 690 application by taking the following action

Tell the employer that you have accepted the application using the SEES letter EXP11 S690 Application accepted (Letter A)

Tell the employee that you have accepted the application using the SEES letter EXP14 Section 690 application choosing letter F or letter G as appropriate

No – Take the following action

Tell the employee that you cannot approve the application using the SEES letter EXP13 Application (Letter E)

Issue the SEES letter EXP12 Section 690 application to the employer