A business visitor is an individual who has come to the UK to work for a short duration. The tax position of these individuals has often been misunderstood.
“Employers without agreements will need to operate PAYE on the earnings of short-term business visitors irrespective of the number of UK workdays.”
HMRC
Any individual undertaking just one day of work (excluding incidental duties) in the UK has a source of income and a UK tax obligation. It may be possible to claim relief from UK tax under a double tax treaty so that no tax is payable in the UK. Each treaty will have specific conditions that need to be considered.
There are three ways that relief can be claimed:
- The individual applying for a No Tax code so no
tax is deducted from payroll payments - A claim for relief on a self assessment tax return
- The employer entering into a short term business visitor (STBV) agreement with HMRC.
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