Net of foreign tax credit scheme

UK EP appendix 5

LIMES International navigates UK employers through the Appendix 5 net of foreign tax credit relief (FTCR) scheme, which allows for PAYE deductions to be adjusted based on foreign taxes paid by employees. This prevents double taxation and ensures compliance with both UK and foreign tax obligations, particularly for businesses with internationally mobile employees and when a double tax treaty exists between the UK and another country.

Employers must apply to HMRC for approval, after which PAYE deductions are adjusted accordingly. Employers are responsible for maintaining records and reporting adjustments to HMRC. By partnering with LIMES international, you can reduce payroll burdens, simplify tax compliance, and improve employee retention by minimising tax complications. Our team of experts will guide you through the process, ensuring your workforce remains compliant while you focus on your business growth.