What is an STBV Agreement?
Any UK based company that receives the benefit of an overseas visitor has an obligation to account for PAYE on that visitor’s employment income from day one. An overseas visitor is an individual from a parent, subsidiary or associated company who visits the UK company and performs work whilst present in the UK.
Although a business visitor can work in the UK and be exempt from UK income tax by virtue of a double tax treaty if certain conditions are met, this exemption does not remove the obligation on the UK company to operate PAYE on the business visitor’s earnings. That PAYE obligation can be removed only if the UK company enters into an STBV Agreement with HMRC. That Agreement relaxes the strict PAYE rules where business visitors meet the required conditions.
With an STBV Agreement in place, the UK company does not need to operate PAYE on qualifying visitors’ employment income and the visitors do not need to register with HMRC, file UK tax returns or reclaim any PAYE taxes. Instead, all regular obligations are replaced by the UK company making just one annual return to HMRC reporting details of all qualifying visitors who were in the UK on more than 30 days in the UK tax year. In addition, an in-year report must be made by the UK company for any business visitor who is expected to be in the UK for between 151 and 183 days.
What is included in our STBV Toolkit?
Operating an STBV arrangement has various benefits for the UK company:
- Reducing negative cash-flow issues and the administrative obligations relating to PAYE withholding for the qualifying business visitors
- Avoiding the need for the business visitors to register with HMRC and file UK Self Assessment tax returns
- Offering peace of mind that the UK company is meeting its obligations
Our Short Term Business Visitors Toolkit provides you with the knowledge and tools to set up an STBV arrangement and make all necessary reporting to HMRC using our easy to use templates.
The STBV Toolkit guides you through the background of the STBV arrangement and why it is essential for you as a UK business to have clear visibility of all business visitors from your overseas offices coming to work with you in the UK. The Toolkit explains the conditions that must be met for the STBV arrangement to work effectively as well identifying potential stumbling blocks to watch out for. Importantly, it describes the time and cost benefits for you and your business visitors of operating an STBV arrangement.
You will have access to the STBV application form, all the reporting templates you will need as well as important additional guidance on how to manage the STBV arrangement and how to respond to any concerns HMRC may have about prior year business visitors to the UK.
For further information on this toolkit, please click here.