Inbound secondment ― payroll issues

Produced by Tolley in association with Paul Tew
Employment Tax
Guidance

Inbound secondment ― payroll issues

Produced by Tolley in association with Paul Tew
Employment Tax
Guidance
imgtext

The collection of income tax and social security (Class 1 NIC in the UK) from employees is normally the responsibility of the employer’s payroll operation. The UK comprises England, Wales, Scotland and Northern Ireland, including territorial waters within 12 nautical miles of the shore. It does not include the Isle of Man or the Channel Islands. The UK also includes the UK sector of the Continental Shelf, as designated under the Continental Shelf Act 1964, s 1(7).

Creating an employment record

Where the employee of an overseas employer is seconded to the UK, the employee will be either resident or non-resident in the UK. See the Residence and domicile ― effect on tax liability guidance note. A seconded employee includes individuals:

  1. working wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer

  2. assigned to work wholly or partly in the UK at a recognised branch of their own employer’s business

  3. who are included by an employer within a dedicated expatriate scheme or an

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Paul Tew
Paul Tew linkedinicon

Writer and advisor at Paywatch


Paul Tew is a freelance adviser, primarily in the areas of pay, personal taxation and remuneration planning. A frequent contributor to technical journals on pay and benefits issues, having written for the "In Business" section of the Times. Paul continues to supply articles for various recognised professional publications including Pay and Benefits magazine, Taxation magazine and Company's Secretary's Review. Paul also has had several loose leaf and bound books published on a variety of subject matter including PAYE, NIC, Sickness and Maternity Pay.Paul has written and presented training courses as well as headed up payroll and employment help desks and acted as an assessor for recognised Payroll/HR qualifications. Paul previously worked in the healthcare and oil sectors managing Pay and benefit services, so has many years of experience in dealing with PAYE and employment compliance issues across a broad range of industries and organisations.

Powered by Tolley+
  • 12 Jun 2025 10:11

Popular Articles

Real estate investment trusts (REITs)

Real estate investment trusts (REITs)Introduction to REITsA real estate investment trust (REIT) is in fact not a trust at all, it is a company which qualifies for special tax treatment under CTA 2010, Part 12. REITs are similar in many ways to collective fund vehicles (such as unit trusts) in that

14 Jul 2020 13:04 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more Read more