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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1B NICs: liability: residence and presence conditions

Regulations 145 and 146 of the Social Security (Contributions) Regulations 2001

Liability and entitlement to pay NICs rests upon the satisfaction of prescribed conditions regarding residence and presence in Great Britain or Northern Ireland. These conditions extend to Class 1B NICs to provide that

  • the employer is only liable to pay Class 1B NICs if they are resident or present in, or have a place of business in, Great Britain or Northern Ireland when the contributions become payable
  • the employer may pay Class 1B NICs voluntarily if they wish, even if they do not satisfy the residence and presence conditions which apply to liability
  • an employer will not be liable to pay Class 1B NICs in relation to any employee who is working for them, but who is not ordinarily resident or employed in Great Britain or Northern Ireland until that employee has been in Great Britain or Northern Ireland for a continuous period of 52 weeks
  • an employer who has a place of business in Great Britain or Northern Ireland will remain liable to pay Class 1B NICs for the first 52 weeks during which an employee, who is ordinarily resident in Great Britain or Northern Ireland, is employed by them in gainful employment outside Great Britain or Northern Ireland.