S690 Determinations – A Happy New Year
Steve Wade
Partner - PAS Tax at EY | Chartered Tax Advisor | Expatriate and Employment Taxes
I asked will commonsense prevail in my article S690 Determinations, will commonsense prevail? The answer unfortunately is No!
HMRC have explained that the new on-line application form will be available from 6 April 2025. Yes, it is the intention that the new form is to go live on a Sunday as that is the first day of the Tax Year.
HMRC are insisting that all existing S690 determinations will be invalid and that all, including valid S690 determinations, will need to be re-applied for. This is the case, even if you get aS690 determination that is for exactly the same percentage as before! ?I remain unconvinced by any of the reasons given to me for this. It just seems to be imposing an administrative burden for the sake of it.?
This is particularly unnecessary because HMRC have confirmed that the ￡300,000 cap and the 30% threshold are not going to apply for the purposes of PAYE and the S690 determination.
If this is how the system is to work, why can’t HMRC issue an easement that allows S690s to continue when the percentage doesn’t change between the 2024/25 and the 2025/26 tax years?
So, I wish you a Happy New Tax Year completing unnecessary forms. Remember this, if/when we hear commitments to simplification and greater efficiency in the spring statement.
Director | EY Financial Services | Employment Taxes
2 天前Steve Wade Lost for words on this one!
Partner, People Advisory Services Tax at EY
2 天前This must be concerning for employers looking for some clear direction so they can plan in advance.
Chartered Accountant, German Speaker, Sports Lover, Global Mobility, Employment Taxes and Social Security Specialist
3 天前But remember Steve, that when the (previous) Government got rid of the Office of Tax Simplification, they promised that tax simplification would be at the heart of the all the decisions the Treasury and HMRC would make on a going forward basis and hence the OTS structure was simply superfluous ...
Partner at Oury Clark | Former ATT President | ABAB Board Member
3 天前Make it make sense!
Senior Manager - Employment Tax - People Advisory Services at EY
3 天前A decision that seems completely mad and will just create unnecessary complications (and inevitable HMRC system crashes on 7th April!)