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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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Secondary contributor: special rules: person works for someone in the UK: on or after 6 April 2014

The Social Security (Categorisation of Earners) (Amendment) Regulations 2014 / Statutory Instruments 2014 No. 635

The Social Security (Categorisation of Earners) (Amendment) Regulations 2014 / Statutory Instruments 2014 No. 635 replace the rules at NIM33720 to provide a new regime for situations where the employer is outside the UK and the worker provides a service for a host business in the UK where

  • a worker is employed by a foreign employer; and
  • the worker provides a service to a UK employer

The UK employer is treated as the secondary contributor.

A UK employer is not the contractual employer but someone in the UK (the end client) to whom the worker provides services.

A worker ‘provides a service’ to another person where there is a contract between the end client and a UK agency under or in consequence of which

  • the services are provided; or
  • the end client pays, or otherwise provides consideration for the services; and
  • remuneration is received by the worker from any person in consequence of the worker providing their services.

The legislation does not apply if it is shown that there is no supervision, direction or control (or the right of it) as to how the worker provides their service. This can be exercisable by anyone and the legislation does not specify it has to be the person they provide the service to.

These rules apply where a foreign employer is not treated as being a secondary contributor and liable under European Union regulations, see NIM33120 or under the UK / Isle of Man Reciprocal Agreement, see NIM33012.

  • NIM33750 and ESM2070 sets out the rules where a person is supplied by or through an agency.
  • NIM33770 sets out the special rules where a person is employed on the UK Continental Shelf.
  • NIM29012 sets out the rules where a person is a mariner. (NB. The rules at NIM33770 takes precedence where a person is employed on the UK Continental Shelf in the oil and gas industry).