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French employer

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17 September 2013

Issue: 4420 / Categories: Forum & Feedback , Employees , Income Tax

What are the Class 1 NIC implications for the UK employee of a French company?

We have been contacted by a French company which is about to employ a salesman in the UK. It requires a UK payroll to be operated for the new employee. The employee is a normal UK resident individual and so is subject to UK income tax and National Insurance contributions.

My understanding was that where a business has no UK place of business it cannot be liable to secondary class 1 National Insurance contributions.

However when I checked the guidance it referred to the new EC regulation 883/2004 introduced in May 2010.

This means employers in EC countries are treated as having a place of business in the UK for National Insurance purposes.

Consequently an EU employer with no UK place of business will be subject to secondary contributions in respect of employees working in the UK.

Details on the application of these new regulations appear...

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French employer

© Copyright LexisNexis 2024. All rights reserved.

17 September 2013

What are the Class 1 NIC implications for the UK employee of a French company?

We have been contacted by a French company which is about to employ a salesman in the UK. It requires a UK payroll to be operated for the new employee. The employee is a normal UK resident individual and so is subject to UK income tax and National Insurance contributions.

My understanding was that where a business has no UK place of business it cannot be liable to secondary class 1 National Insurance contributions.

However when I checked the guidance it referred to the new EC regulation 883/2004 introduced in May 2010.

This means employers in EC countries are treated as having a place of business in the UK for National Insurance purposes.

Consequently an EU employer with no UK place of business will be subject to secondary contributions in respect of employees working in the UK.

Details on the application of these new regulations appear...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4420

Categories: Forum & Feedback [1] , Employees [2] , Income Tax [3]

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