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Where Taxpayers and Advisers Meet

19. National Insurance contributions are not payable for the first 52 weeks

Tushar Shah
Posts: 25
Joined: Tue Nov 08, 2016 1:08 pm

19. National Insurance contributions are not payable for the first 52 weeks

Postby Tushar Shah » Tue Dec 05, 2017 1:26 pm

UK & India company structure:

- UK & India Based company
- Indian company is not a branch or subsidiary of UK Ltd
- UK Company holding 90% shares and also director of Indian Ltd.
- UK Ltd Calling employee for short term ( 6-12 months ) or long term ( 12-24 months ).
- UK Company running a payroll for the employee’s coming from Indian company for short or long term period.
- Employee’s arrived in the UK will also get salary from Indian company in Indian account as they are employee of Indian company.

Questions:

 - Are employees coming to work for UK Company qualified for 52 weeks national insurance exemptions?
 - If yes, Employer need to get any confirmation or certificate from HMRC ( i.e. NI Exemption certificate )
 - Indian company need to take any certificate or confirmation from local authorised body.
 - Do employees need to take any confirmation or certificate?
 - What NI Code or type need to use?
 - How to recollect paid NI?

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: 19. National Insurance contributions are not payable for the first 52 weeks

Postby AmanSood » Mon Dec 18, 2017 9:27 pm

UK & India company structure:

- UK & India Based company
- Indian company is not a branch or subsidiary of UK Ltd
- UK Company holding 90% shares and also director of Indian Ltd.
- UK Ltd Calling employee for short term ( 6-12 months ) or long term ( 12-24 months ).
- UK Company running a payroll for the employee’s coming from Indian company for short or long term period.
- Employee’s arrived in the UK will also get salary from Indian company in Indian account as they are employee of Indian company.

Questions:

 - Are employees coming to work for UK Company qualified for 52 weeks national insurance exemptions?
 - If yes, Employer need to get any confirmation or certificate from HMRC ( i.e. NI Exemption certificate )
 - Indian company need to take any certificate or confirmation from local authorised body.
 - Do employees need to take any confirmation or certificate?
 - What NI Code or type need to use?
 - How to recollect paid NI?

Hi Tushar

Yes employees from India on assignment to the UK can continue contributing social security in India for the first 52 weeks and in the UK after the 52 week period has elapsed. No certificates etc required. If NIC has incorrectly been paid/applied in the UK, then an application needs to be made to HMRC to obtain a refund as both the Company and employee will have overpaid. Also worth ensuring that the self assessment is correctly completed to maximise the tax reliefs/deductions available on for example accommodation etc.

Hope this helps.

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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