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Budget 2018: Changes to the Short Term Business Visitor (STBV) regime

Budget 2018: Changes to the STBV regime

The rules for STBVs from overseas branches of UK companies will change from April 2020.

Colin Ben-Nathan


KPMG in the UK


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At this year’s Budget, HM Revenue & Customs (HMRC) published the outcome of its consultation on STBVs from overseas branches of UK companies.

HMRC’s consultation on STBVs

STBVs from overseas branches of UK companies, or from countries which do not have a Double Tax Treaty with the UK, can be included in a Special Annual PAYE Scheme.

This allows the UK employer (or host employer) to make a single annual payroll report shortly after the end of the tax year, rather than make payroll reports on a monthly real-time basis. However, Special Annual PAYE Schemes can currently apply only to individuals who have 30 or fewer UK workdays during a UK tax year.

HMRC launched a consultation in May on how best to reduce the administrative burden for employers who have STBVs in the UK from overseas branches, and proposed two alternative policy options:

• Extending the Special Annual PAYE Scheme UK workday limit from 30 to 60 days; and

• A new tax exemption for relevant STBVs.

A fuller discussion of the consultation is set out in our earlier article.

Changes from April 2020

Following a review of the consultation responses, the Government announced at the 2018 Budget that the Special Annual PAYE Scheme will change from 6 April 2020 such that:

• The UK work day limit will extend from 30 to 60 days; and

• The reporting and payment deadline will move back from 19 April to 31 May following the end of the tax year.

The Government has decided not to introduce a new tax exemption for STBVs from overseas branches of UK companies.

The extension of the UK workday limit to 60 days will be welcomed by employers, as it should allow more STBVs to be included within a Special Annual PAYE Scheme, avoiding the need to undertake strict payroll reporting and tax withholding every month.

The extended reporting deadline will also be helpful, as this will provide employers with an additional six weeks to analyse the relevant data.

It also aligns Special Annual PAYE Scheme reporting with that for ‘EP Appendix 4’ Short Term Business Visitors Agreements (which can apply in cases where the STBV qualifies for treaty relief).

However, these changes will not change the scope of the underlying analysis required in respect of an employer’s STBV population, which can be complex and involve several stakeholders in the business.

How KPMG can help

KPMG has extensive experience of assisting companies manage their internationally mobile employee populations.

If you would like to talk through the impact of these changes for your business, or any other aspect of you international mobility programme, please get in touch with your normal contact or email

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