Tim Kelsey, Learn Centre’s International Payroll Tutor, highlights that one of the biggest problems facing UK companies are short-term business visits.
There are lots of issues – you need to track visitors, gather payslip data from overseas and run shadow calculations all to the Real Time Information (RTI) timetable. The employee also has to submit a tax return at home. This often leads to grossing-up by the employer and provision of tax services to get tax returns completed. All of this costs.
To tackle these issues, the government has launched a consultation to relax the rules around short term business visitors from overseas branches. Kelsey urges employers to respond this consultation.
Continuing with the update, Kelsey highlights changes happening in France. They are introducing, from 1 January 2019, a flat-rate PAYE system, which applies to the whole of the taxable salary. This rate will come across on the DSN and sounds simple but it might create an increase in the number of queries.
Ireland is another country with big changes afoot. Ireland is having a major overhaul of its PAYE system. Employers will need to report to revenue pay, tax and other deductions and leavers at the time they run the payroll. They will also want details of new starters before their first pay day.
Finally, Sweden and Australia are both introducing their own versions of Real Time Information from July 2018. As you’d expect, both versions have their own intricacies.
