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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1A National Insurance contributions: Special Class 1A NICs cases: Workers going or coming from abroad who are provided with benefits: General

In addition to benefits provided to employees who work in the UK, some employers provide benefits which can be

  • enjoyed by employees who are sent abroad to work
  • left behind for the employees use once they return
  • available to family members whilst the employee is abroad. Benefits can also be provided to employees who are sent to the UK to work. These benefits can either be provided by the UK employer or by a foreign employer.

Liability, and in some cases, entitlement to pay NICs, rests upon the satisfaction of prescribed conditions of residence or presence in the United Kingdom (Great Britain and Northern Ireland). These conditions are set out in regulations 145 to 148 of the SS(C)R 2001 and apply equally to Class 1A NICs.

The effect of these regulations may be modified by

  • European Community (EC) Council Regulations
  • Reciprocal Agreements (RAs)
  • Double Contribution Conventions (DCCs)
  • The Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 NO 1689).Full guidance on the NICs treatment of workers going or coming from abroad, is provided in

NIM33001. That guidance should be considered before any attempt is made to establish whether any benefits provided to employees coming from abroad to work in the UK, or workers leaving the UK to work abroad, are liable for Class 1A NICs.

NIM16402 onwards provides the general Class 1A NICs position for workers coming from, or going abroad, and indicates where more information can be obtained.