Payroll dispensation scheme – checklist


NoWork 
1Reviewing contract of employment 
2Reviewing deputation or assignment letters 
3Reviewing company travel policy for secondments 
4Obtaining & reviewing personal details of employees seconded to UK 
5Considering expected length of secondment 
6Considering expected lengths of projects 
7Remuneration & benefits to be paid to secondees in India 
8Levels of Living allowances to be paid to secondees in Uk 
9Provision of accommodation to secondees in Uk 
10Consideration / reviews of existing controls to enable identification of eligible employees 
11Procedures to ensure employees are taxed correctly in the Uk 
12Letter setting out recommended level of daily scale rate payments / accommodation 
13Drafting letter to HMRC requesting dispensation 
14Dealing with queries raised by HMRC 
15Obtaining dispensation 
16Preparing letter to the company explaining tax implications of dispensation 
17Liaising with company & explaining record keeping requirements of dispensation 
18Meeting with HMRC if requested by HMRC 
19Obtaining & reviewing any stock options paid to managers / senior staff 
20Reviewing plans to pay re-location expenses to secondees 
21Impact of business visas / work permits on SDS. How to avoid conflicts between immigration rules & tax regulations 
22Reviewing cost of living expenses in different parts of UK & impact on allowances where secondees work in different parts of UK 
23Impact on dispensation where secondees incur expenses in travelling to Europe on short trips over and above UK allowances 
24Reviewing the rules on short-term business visitors to the UK 
25Rules regarding UK resident staff or consultants hired in the UK (Tier 2 transfers)