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Where Taxpayers and Advisers Meet

expat national insurance

blokey
Posts:10
Joined:Tue Sep 30, 2014 2:54 pm
expat national insurance

Postby blokey » Tue May 18, 2021 6:45 pm

Hi everyone

Was hoping someone would be able to give me some guidance. I moved to Africa more than two years ago. I work for the the same UK employer as I did although I have not been seconded. According to what I have read on the HMRC website I need to fill in a form to tell HMRC I have left the UK and in so doing will then need to pay NI for 52 weeks before it no longer becomes necessary. I do fill in a tac return yearly that HMRC send to my new address. The thought floating around is that I still have to pay the NI even if I don't live in Britain, because I am employed there.

Any assistance would be of tremendous help.

Thanks

ETaxConsulting
Posts:7
Joined:Sun Nov 29, 2020 3:25 pm
Contact:

Re: expat national insurance

Postby ETaxConsulting » Wed May 26, 2021 11:02 am

Your employer should have withheld national insurance during the first 52 weeks. I assume you are still being paid via a UK payroll?
Tax Manager
E-Tax consulting
www.e-taxconsulting.com

blokey
Posts:10
Joined:Tue Sep 30, 2014 2:54 pm

Re: expat national insurance

Postby blokey » Fri May 28, 2021 1:16 am

Hi, thanks for the reply. Yes tax is deducted via there UK payroll

etf
Posts:764
Joined:Mon Nov 02, 2009 5:25 pm

Re: expat national insurance

Postby etf » Fri May 28, 2021 1:58 pm

See leaflet NI38 covering the option for voluntary Class 2 NIC payments once payroll NI ceases (to maintain your contribution record for state pension etc).

Assuming you qualify as non-UK resident under the UK statutory residence test and you perform all of your duties outside the UK you can reclaim the UK PAYE tax withheld (and request a no tax (NT) code going forward).

blokey
Posts:10
Joined:Tue Sep 30, 2014 2:54 pm

Re: expat national insurance

Postby blokey » Fri May 28, 2021 3:48 pm

Hi

All duties are performed for UK customers as my company is UK based.

Regards

etf
Posts:764
Joined:Mon Nov 02, 2009 5:25 pm

Re: expat national insurance

Postby etf » Fri May 28, 2021 6:57 pm

Are the duties physically performed outside the UK i.e. in Africa?

blokey
Posts:10
Joined:Tue Sep 30, 2014 2:54 pm

Re: expat national insurance

Postby blokey » Sat May 29, 2021 12:10 pm

Hi yes all work is done remotely from Africa.

etf
Posts:764
Joined:Mon Nov 02, 2009 5:25 pm

Re: expat national insurance

Postby etf » Sat May 29, 2021 5:19 pm

You are potentially due a UK tax refund if you qualify as non-UK resident.

You also should check the obligation to pay tax in the country in which you live and work.

blokey
Posts:10
Joined:Tue Sep 30, 2014 2:54 pm

Re: expat national insurance

Postby blokey » Sun May 30, 2021 9:28 am

Thanks for the replies. Tax is payable here as I am a resident. Is there some sort of HMRC document that outlines this that I can show to my employer or is this something I need to sort directly with HMRC?

darthblingbling
Posts:415
Joined:Wed Aug 02, 2017 9:09 pm

Re: expat national insurance

Postby darthblingbling » Sun May 30, 2021 10:38 am

You need to apply for an NT code, form p85 is your friend and once approved HMRC will send your employer an NT code and tax will no longer be withheld on your employment income. This is assuming you have no work duties in the UK whatsoever.

As for NI, your employer needs advice. But if the move to Africa is permanent and you do no work in the UK whatsoever you should not be subject to Class 1 NI at all. If it's only temporary and you've retained links to the UK then you should only have been subject to Class 1 NIC for the first 52 weeks you commenced employment abroad. (Above is assuming you are not in a reciprocal agreement country, from memory I think only South Africa is such a country in Africa, but I could be wrong) There is no form for this, your employer needs to get advice and take action.

They should also get advice on PE risks and payroll tax in the country you are working in as they may have obligations there.


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