PAYE81514 - PAYE operation: international employments: Internationally mobile employees - PAYE notification
Source: gov.uk (2025-09-26)


Section 690A ITEPA 2003

From 6 April 2025, where an employee is internationally mobile for a tax year (see PAYE81513 (https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye81513)), section 690A allows the employer, or an appropriate person designated by their employer, to notify HMRC that they propose to treat a specified proportion of any uncertain payment as not being PAYE income (see PAYE81513 (https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye81513)for more information about uncertain payments). This means that once HMRC has acknowledged receipt of a valid notification the employer will only be required to operate PAYE on part of the income paid to that employee.

More information about an appropriate person and making a notification can be found at PAYE81519 (https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye81519).

Where a valid notification is made, it has effect from the date that HMRC acknowledge receipt of the notification and allows the employer to only operate PAYE on the proportion of any uncertain payment which is expected to relate to UK duties.

The proportion specified in the notification should be the proportion of the employee’s income which the employer expects to relate to duties performed outside the UK at the time the notification is made.

This means that if an employer makes a notification specifying 20% of any uncertain payment to be treated as not being PAYE income, if they make an uncertain payment of £100,000, they would be required to operate PAYE on £80,000.

The GME PAYE notification process can be used to assist employers in paying the most accurate amount of PAYE possible for their employee. The GME PAYE notification under section 690A has effect for any payment where uncertainty exists, as to how much of a payment will be PAYE income by reason of the international mobility of the employee.

However, if there was no uncertainty, for example the employer had determined that either the payment was wholly PAYE income, the payment was wholly non-PAYE income, or only 50% of the payment was PAYE income, then the notification would have no effect and the employer should operate PAYE on the PAYE income paid.

Example

Emil has arrived in the UK for the first time on 6 April 2025 on secondment from his employment in Denmark. He is contracted to work in the UK on an hoc basis to oversee a project when the employer determines it is necessary for him to attend directly. The employer expects Emil will have to spend 25% of his time in the UK. Emil will be expected to remain non-resident during this time and the employer submits a notification that will enable them to operate PAYE on 25% of Emil's earnings.

During the year Emil signs a new contract that stipulates that he will work one week per month in the UK and the remaining time will be in Denmark. The employer is now certain of the proportion that should be subject to PAYE. The notification is in place but will no longer have effect and the employer should operate PAYE on the amount they know will be PAYE income.

Where a notification is made under section 690A for a tax year, the employee will need to file a Self-Assessment tax return for that tax year.

Where a notification has been made under section 690A, HMRC can issue a direction under section 690B specifying a different proportion to that included in any notification made by the employer, which will then have effect in relation to any subsequent uncertain payment made during the tax year (see PAYE81520 (https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye81520)).