Employer NIC foreign employee

[Corazza]

Hi,

A UK Co employs a foreigner employee who has never been resident nor ordinarily resident in UK.
Employee performs ALL of his duties abroad.
Do the employeer have to pay NIC in regards to that emplyee?

thanks

[etf]

Hi Corazza,

On the facts provided, the UK Co will not be required to operate UK NICs or UK PAYE tax on the employee's salary. Whilst the employer is not required to include the employee's earnings in records for the purposes of making PAYE returns, it may like to consider requesting a No Tax code from HM Revenue and Customs as a belt and braces exercise.

The employer should consider whether there is payroll reporting requirement in the country where the employee is based and also whether the employee's presence in that country might potentially constitute a taxable presence for the UK Co there, with the additional tax filings and tax payments etc this could generate.

Kind Regards

etf

http://theexpatriatetaxfactory.com