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Changes to notifications by employers to operate PAYE on a proportion of a globally mobile employee’s income and Overseas Workday Relief
Newsletter issue – June 2025
The previous non-domicile rules regarding operating PAYE on a reduced percentage of an employee's income (known as Section 690) ended, replaced by a system based on tax residence. Any HMRC directions issued before 6 April 2025 are no longer valid - employers must submit a new notification to operate PAYE on a reduced amount for the 2025-2026 tax year.
Employers can now notify HMRC of a specified proportion of income that will not be treated as PAYE income for globally mobile or non-resident employees. Payments made after 6 April 2025 for earlier tax years will be assessed as PAYE income based on the best estimate of tax status.
Overseas Workday Relief Eligibility criteria have changed, so employers must assess employees' qualifications under the new rules.
Employees no longer need to pay foreign employment income into a designated overseas account to benefit-except for income from tax years ending before 6 April 2025.
Overseas Workday Relief now has an annual financial limit, applied when the employee files a Self Assessment tax return. It is now available for the first four years of UK residence. New residents can claim deductions for travel expenses for four years (previously five years). Non-residents remain eligible for five years from arrival.
Employees must keep records of their work performed outside the UK to ensure correct tax reporting.
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
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