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The standard method of payroll operation in the UK is referred to as the PAYE system. The PAYE reporting process is known as the real time information (RTI) system, whereby the employer is obliged to make statutory and other deductions (the most common of which being PAYE tax and NIC), report these details to HMRC contemporaneously, and pay over the deductions to HMRC or the relevant third party. See the Real time information guidance note for additional information on RTI.

As a starting point it may be necessary to establish if UK payroll obligations do exist, when an employee newly arrives in the UK. The Establishing UK payroll obligations for globally mobile employees guidance note looks at this from a new UK employee’s perspective. The employer’s perspective on UK payroll obligations may however differ, especially if the employer itself is non-UK resident, in which case the Non-resident employers ― obligations placed on other parties to apply UK payroll guidance note may assist.

Subject to establishing that there is a