NIM33034 Special Cases : Class 1 : Workers
going to and Coming from Abroad - ROW - Apportionment - what can be
excluded from NIC?
Section 2(1) Social Security Contributions & Benefits Act
1992 Regulation 145 Social Security (Contributions) Regulations
2001
Reason for the apportionment
To be liable for NIC in the UK under Section 2(1) SSCBA 1992 and
Regulation 145 (1) SSCR 2001, some duties of the employment have to
be performed in the UK, however the legislation is drawn wide
enough to allow for some temporary or incidental duties of the
employment to be performed outside the UK, if the UK is where the
employment duties are usually performed.
- An employee who has employment based in
the UK who goes abroad for a time on a short business trip or
holiday abroad, and who departs and returns to the UK and continues
in the UK scheme is merely temporarily absent from their UK
employment. No apportionment is required.
but
- An employee meeting the criteria in
NIM33033 would not be regarded as being merely temporarily absent
from their normal employment in the UK. Therefore that part of the
salary that relates to the days the employee is working outside the
UK for their overseas employer can be excluded from NIC.
Duties performed for the purposes of the UK host or the
overseas employer?
Only payment for those duties that are performed overseas for
the purposes of the overseas employer can be excluded from earnings
for NIC.
To ascertain whether duties are performed for the purposes of
the UK host business or for the overseas employer consider:
- Have the UK company funded the employment
costs of the employee?
- Is there a new contract or letter of
secondment attaching the person to the UK business?
- Which company benefits from the work the
employee does overseas?
