Payroll dispensation scheme – checklist

No Work  
1 Reviewing contract of employment  
2 Reviewing deputation or assignment letters  
3 Reviewing company travel policy for secondments  
4 Obtaining & reviewing personal details of employees seconded to UK  
5 Considering expected length of secondment  
6 Considering expected lengths of projects  
7 Remuneration & benefits to be paid to secondees in India  
8 Levels of Living allowances to be paid to secondees in Uk  
9 Provision of accommodation to secondees in Uk  
10 Consideration / reviews of existing controls to enable identification of eligible employees  
11 Procedures to ensure employees are taxed correctly in the Uk  
12 Letter setting out recommended level of daily scale rate payments / accommodation  
13 Drafting letter to HMRC requesting dispensation  
14 Dealing with queries raised by HMRC  
15 Obtaining dispensation  
16 Preparing letter to the company explaining tax implications of dispensation  
17 Liaising with company & explaining record keeping requirements of dispensation  
18 Meeting with HMRC if requested by HMRC  
19 Obtaining & reviewing any stock options paid to managers / senior staff  
20 Reviewing plans to pay re-location expenses to secondees  
21 Impact of business visas / work permits on SDS. How to avoid conflicts between immigration rules & tax regulations  
22 Reviewing cost of living expenses in different parts of UK & impact on allowances where secondees work in different parts of UK  
23 Impact on dispensation where secondees incur expenses in travelling to Europe on short trips over and above UK allowances  
24 Reviewing the rules on short-term business visitors to the UK  
25 Rules regarding UK resident staff or consultants hired in the UK (Tier 2 transfers)