From 6 April 2013 the rules regarding short term business visitor arrangements have been updated. Employers who already have signed agreements in place with HMRC need not reapply.

The CWG2 Employer Further Guide to PAYE and NICs advises employers that it may be possible to relax strict PAYE requirements for employees on short-term business visits to the UK, and tells employers to contact their HMRC Office.

The arrangement provides that PAYE can be disregarded in certain circumstances. If an employer has only one or two employees potentially affected they may consider applying for a NT (No Tax) code (see PAYE81625) on an individual basis instead.

This arrangement must only be applied provided that it can be shown that for specifically named employees, the UK Company or branch will not in fact ultimately bear the remuneration specified.

The individuals concerned must also meet the following conditions:

• Resident in a country with which the UK has a Double Taxation Agreement under which the Dependent Personal Services / Income from Employment Article (Article 15 or the equivalent) is likely to be competent
• Coming to work in the UK for a UK company or the UK branch of an overseas company
• Expected to stay in the UK for 183 days or less in any twelve month period

Where agreement is reached and in all other aspects the employee falls within the guidelines, then that part of the remuneration not ultimately borne by the UK Company or branch can fall within this arrangement. More information is reproduced on here.