Conditions of Liability: liability for NICs - rest of the world
Regulation 146 of the Social Security (Contributions) Regulations 2001
Where the worker provides personal services to a client abroad, the intermediaries legislation may not apply for NICs purposes (see ESM3130). A worker will pay social security contributions under the legislation of the country where he is working.
A contract involving a worker living in the United Kingdom and a client in Angola under which services are provided in Angola would mean he would be liable to pay Angolan social security contributions. He would not be an employed earner under United Kingdom national insurance legislation. The intermediaries legislation will not apply for NICs purposes.
However, a worker providing services overseas can continue to pay contributions in the United Kingdom for a period of 52 weeks from the beginning of the overseas employment. Subject to certain conditions, he could be treated as working in the United Kingdom. The main criteria is that the client has a place of business in the United Kingdom.
A worker was ordinarily resident in the United Kingdom and was also resident in the United Kingdom prior to posting to Angola by the intermediary. The client only has a place of business in Angola. The worker would be regarded as an employed earner for United Kingdom national insurance purposes by reason of the contractual arrangement between the intermediary, the worker and the client. The intermediaries legislation will not apply, for NICs purposes, because in deciding whether the legislation applies you consider what the situation would have been if the intermediary had not been involved.
However, a contract between a worker who was ordinarily resident in the United Kingdom and was resident in the United Kingdom prior going to work for a client in Angola who has a place of business in the United Kingdom would be treated as an employed earner for the first 52 weeks. In these circumstances, the intermediaries legislation may apply. However there would be no NIC liability if the 52 week period had expired before the 5t h April in the year of assessment.