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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Workers going or coming from abroad who are provided with benefits: Workers from countries with Reciprocal Agreements or Double Contribution Conventions: Not posted worker

In general, the rules covering liability for NICs in respect of workers arriving to work in the UK from a country with a Reciprocal Agreement (RA) or Double Contribution Convention (DCC) are similar to those for EEA countries, see NIM16450.

Under these agreements, the general rule is that workers pay NICs in the country in which they are working, regardless of where they reside, but each RA or DCC contains variations to this rule. To decide whether a Class 1A NICs liability arises consider the detail of the appropriate RA or DCC.


A worker resident in the USA is employed in the UK by a company which provides him with various benefits on which UK tax is due. The worker is subject to UK NICs legislation and the employer is liable to pay Class 1A NICs on the benefits he provides. Class 1A NICs will be due on any benefits provided to the worker from the date the employment commenced.
For further guidance on

  • RAs and DCCs generally see NIM33014
  • Posted workers from countries with RAs, see NIM33016 and NIM16465
  • Calculating the amount of earnings subject to Class 1A NICs see NIM16500.