A client’s employee wished to leave her job as she was moving back to India. Client requested her to keep on working for few months from India until they found a replacement.
As per HMRC guidance I advised them to submit P85 to HMRC.
Client called HMRC and was advised by the specialist team to complete DT individual form. Print it off and get it stamped by the Indian Tax Authority. Once it is stamped it will need to be passed on to HMRC who will issue employer with an NT code (no tax code) but until then employee has to pay tax in the UK and payroll will be run in usual manner.
The moment employee is issued with an NT code employee does not pay tax in the UK. Only when P45 is issued employee will be reimbursed any tax overpaid.
As expected when employee approached Indian Tax authorities they refused to certify the DT Individual tax form.
Watch this space.