NIM33680 - Outbound Employee

Sections 1 – 3 and 6 of the Social Security Contributions and Benefits Act 1992 (SSCBA)

Regulation 145 of the Social Security Contributions Regulations 2001 (SSCR)

Where an employed earner is paid earnings when abroad for work carried out wholly or partially in the UK then a NICs liability arises only on those earnings earned whilst resident, present or ordinarily resident in the UK.

Different rules may apply if an employee is covered under;

  • A Social Security Agreement see NIM33670
  • Regulation 146 of SSCR 2001 see NIM33685

Example

Tom lived and worked in the UK before moving permanently to Argentina, a country with which the UK does not have a social security agreement, in March 2023. In June 2023 Tom was informed that he would be awarded unrestricted shares worth £30,000 for the employment in the UK between January and December 2022 and the shares were paid to him in December 2023. The shares in this case are chargeable under s62 ITEPA 2003, for shares chargeable under Part 7 ITEPA03 please see NIM06870.

Although Tom is not an employed earner in the UK at the time the shares were transferred to him, a liability for UK NICs arises on the full amount because they were earned wholly in the UK when Tom was subject to UK’s social security legislation.

For more general information about NICs liabilities on shares see NIM06800