The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
HMRC offers two arrangements that relax the strict PAYE procedures in respect of social security / NIC. One of these is the modified NIC arrangement covering outbound employees who are UK nationals, but who have been sent to work on an overseas assignment by a UK employer, known as ‘EP Appendix 7B ― Modified Class 1 NIC for employees assigned from the UK to work overseas’ (EP APP 7B). The EP APP 7B application form is available at PAYE82004.
A modified NIC settlement scheme is available for UK employers that have employees seconded abroad and where their employee satisfies all of the following conditions:
is assigned to work abroad for a period of limited duration, but for more than a complete tax year
is non-resident in the UK and not liable for UK tax on earnings from the relevant employment
has an ongoing liability to UK NIC whilst working abroad
pays Class 1 NIC on earnings in excess of the upper earnings limit for all earnings periods throughout the year, ignoring the month during which the employment starts or ends if that is a part month. In the case of employees with annual pay periods covered by the agreement, their earnings must exceed the annual upper earnings limit, pro-rated if the employment begins partway through the tax year
receives some earnings and / or benefits derived from the employment from sources other than the UK employer, eg from overseas employer
The arrangement applies on the basis of a ‘best estimate’ of those elements of earnings in an employee’s remuneration package that are subject to Class 1 NIC calculated at the start of each tax year, or at the time the individual leaves the UK to start an assignment overseas. The ‘be
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