PT 57 - NICs Overseas Aspects

Question 1

The default position is that a worker is liable to….

Answer 1

Class 1 primary NICs on a payment of earnings if those earnings relate to duties performed in the UK.

Question 2

Class 1 secondary NICs are payable if….

Answer 2

a primary liability arises and the employer has a place of business in the UK

Question 3

Special rules apply where a detached worker….

Answer 3

is sent to work abroad while remaining on their home country employment contract.

Question 4

Where a detached worker is assigned to work in the EU…

Answer 4

the worker will remain in their home social security system if the assignment does not exceed 24 months.

Question 5

Where a detached worker is assigned to work in a country with which the UK has a reciprocal social security agreement (SSA)….

Answer 5

the worker will remain in their home social security system if the assignment does not exceed the period of coverage specified in the agreement.

Question 6

Where a detached worker is assigned to work in a non-EU country with which the UK does not have a reciprocal SSA….

Answer 6

contributions will be payable in the host system unless the ‘52
week rule’ applies.

Question 7

For workers leaving the UK, the worker remains liable to UK NICs for the first 52 weeks of the overseas assignment if:

Answer 7

a. The individual is working for an employer outside the UK;
b. That employer has a place of business in the UK;
c. The employee is ‘ordinarily resident’ in the UK; and
d. Immediately before the commencement of the overseas assignment, the employee was resident in the UK.

An individual is ‘ordinarily resident’ in the UK if they normally live in the UK apart from occasional or temporary absences.

Question 8

For workers coming to the UK from a non-EU country with which the UK does not have a reciprocal SSA….

Answer 8

no UK NICs are payable for the first 52 weeks of the inward assignment if:
a. The employee is not ordinarily resident nor employed in the UK;
b. The employee is sent to the UK in continuance of an employment which is performed mainly outside the UK;
c. Employment in the UK is “for a time” (less than five years); and
d. The employee is sent by an employer whose place of business is outside the UK.

Question 9

Workers can elect to make voluntary NICs in order to…

Answer 9

plug any gaps in their NICs contribution record and preserve entitlement to benefits.