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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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NIM02083 - Class 1 NICs : Earnings of employees and office holders : Community Charge paid by the employer : Standard Community Charge paid by the employer on relocation

As a requirement of the job, an employer might ask an employee to move from one area to another. The employer may have paid or contributed towards the employee’s Standard Community Charge bill. This represents a relocation expense payment.

If such a situation arises the NICs position is that:

  • NICs are not due if the Standard Community Charge was on a property left vacant pending a sale in the old area after the employee has started duties in the new area;
  • NICs are not due if the Standard Community Charge was on temporary accommodation occupied by the employee in the new area while they were seeking a more long term address;
  • NICs are not due if the Standard Community Charge was on temporary accommodation occupied by the employee in the new area while they were temporarily working in that area and the permanent place of employment is somewhere else. Temporarily meant less than 12 months at that time; and
  • NICs are due if the Standard Community Charge was on temporary accommodation occupied by the employee in the new area while they were temporarily working in that area, but it was known from the outset that the absence from the permanent place of employment would be for more than 12 months.