Outbound secondment ― practical payroll tax and NIC points

Produced by Tolley in association with

Employment Tax

Guidance

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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 off 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).

Working in the UK and overseas

Where a UK-based employee is seconded to work in another country, the income tax and social security that arise in the host country may be payable on earnings from the overseas duties performed, as well as there being a continuing tax and NIC liability in the UK. For example, this will normally be the case where an employee leaves the UK and spends more than 183 days (but less than a complete tax year) in a host country, such that the employee remains UK tax resident and may

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Paul Tew

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.

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