Short Term Business Visitor Arrangement – STBV
When a worker is employed by, used by or paid by a UK employer there is a requirement to operate PAYE. This is the case even when the worker would be able to claim relief from UK tax under a double tax treaty. This means that if an employee of an overseas undertaking comes to the UK for a meeting or to assist with a project in relation to the UK company there is a requirement to operate PAYE. The worker may then need to claim back any tax paid in the UK.
To avoid the need to for the deduction and reclaim of tax, HMRC introduced the STBV scheme. In effect where an individual is:
- Employed by an overseas business
- Sent to work for a UK company
- Resident in a country with which the UK has a double tax agreement with a valid employment article
- Costs are not suffered by the UK company
The strict PAYE provisions can be relaxed provided a STBV scheme has been agreed with HMRC.
Where a STBV scheme is used the UK company must implement a system to track overseas business visitors. Each year a report must be made to HMRC by 31 May following the end of the tax year detailing any business visitors that have 30 days in the UK. More information is required the more days a business visitor has spent in the UK. A certificate of residence may have to be obtained from the overseas tax authority. Further information on the precise disclosure requirements can be provided if required.
It should be noted that if any visitor is expected to spend 150 days in the UK an application on a named basis must be made for them to be included in the STBV scheme. They will need to justify why they believe they remain treaty resident outside the UK.
Menzies Global Mobility specialists would be pleased to advise further on the operation of this Scheme.