The following Employment Tax guidance note Produced by Tolley in association with Jim Yuill at The Yuill Consultancy provides comprehensive and up to date tax information covering:
Class 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and secondary contributions which are payable by a ‘secondary contributor’. The secondary contributor is usually the employer, but in some cases as set out below may be another defined party.
For a primary liability to arise, the employed earner must be resident or present in the UK at the time of the employment, or ordinarily resident in the UK at that time. The fact that presence in the UK is sufficient to create a NIC liability means that unless an exemption applies, employment in the UK for however short a time will create a NIC liability.
Employment in an EEA country or Switzerland, or in a country with which the UK has a bilateral social security agreement will often require NIC liabilities to continue. In such circumstances, an individual is treated as being continuously resident in the UK.
For a secondary liability to arise, the person who would be the secondary contributor must be resident or present in the UK when NIC becomes payable, or has a place of business in the UK at that time.
The UK negotiated a Withdrawal Agreement and left the EU on 31 January 2020 (referred to as ‘exit day’) with an 11-month implementation period up to 31 December 2020. While exit day was important in terms of being the date the UK ceased to be an EU member state, the majority of key domestic tax and social security changes associated with Brexit take effect from the end of the implementation period (specifically, 11pm (GMT) on 31 December 2020, referred to as ‘(implementation period) IP completion day’). See the Brexit ― personal and employment tax
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
This guidance note provides an outline of the main trustee powers and duties. Although there is a degree of overlap between them, the term ‘powers’ usually refers to discretionary or optional actions which the trustees may take for the purpose of maintaining the trust and supporting beneficiaries.
This note applies to transactions whilst the Great Britain was a member of the EU and during the transition period that ended on 31 December 2020. For information on Northern Ireland see the Northern Ireland topic. Triangulation is an EU simplification measure that was introduced in order to reduce