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Covid-19: HMRC extends deadline for Appendix 7A/7B employer returns

Updated 9 April 2020: HMRC has extended the end of year payroll reporting deadline for employers of internationally mobile employees to 31 May 2020 due to the ongoing coronavirus pandemic.

Updated to include web links to HMRC forms. Text accurate as of 8 April 2020.

The announcement applies to businesses that operate modified payroll reporting for employees coming to or leaving the UK. The modified arrangements are known as EP Appendices 7A and 7B.
The arrangements allow affected employers to apply to pay NIC and complete a PAYE full payment submission at the normal time using a best estimate of the earnings and benefits, and later submit a minor correction to the amount of Class 1 or Class 1A NIC without attracting a penalty.
The objective is to help businesses with internationally mobile workers by giving them a little longer to identify and account for minor benefits and payments that were not paid from the UK payroll. 
Details are in HMRC’s PAYE Manual PAYE82003 (EP Appendix 7A) and PAYE82004 (EP Appendix 7B). 
HMRC’s announcement, ‘Internationally Mobile Employees – Appendix 7A and 7B returns – filing dates extended to 31 May 2020 due to COVID-19’, stated that “some customers with internationally mobile workers can register with us to send in returns and make payments under the procedures at Appendix 7A and 7B. The original filing deadline was 31 March 2020. 
“Due to the recent COVID-19 outbreak and accompanying advice from the Prime Minister and HM Government, we recognise most customers and agents may either be in self-isolation or will be working from home, with limited access to usual resources,” continued the statement.
In the announcement, HMRC confirmed the following measures to help:

  • The deadline for returns and payments has been extended to 31 May 2020
  • Those posting an application should do so as soon as possible, and the tax authority will try to provide a confirmation receipt.

HMRC have now provided links to online return forms:

  • NIC settlement return (NSR Appendix 7A). This form is to be used by employers who operate PAYE under Employment Procedures Appendix 6 tax equalisation in respect of employees from abroad and working in the UK.
  • NIC settlement return (NSR Appendix 7B). This form is to be used by employers who operate an Employment Procedures Appendix 6 equalisation agreement in respect of employees working abroad.

For the latest news and guidance on the ongoing impact of COVID-19 for businesses and accountants, visit ICAEW’s dedicated coronavirus hub.