The recent First-tier Tribunal (FTT) decision in Bilfinger Salamis UK Limited (TC9261) analyses the now amended para 9 of Schedule 3 of the Social Security (Categorisation of Earners) Regulations 1978. Referred to as the ‘host employer’ rules this provision is designed to impose secondary class 1 National Insurance contributions (NICs) liabilities on a host employer where the services of employees are made available to it by a foreign employer.
What does the case consider?
The appellant Bilfinger Salamis UK Limited (Bilfinger UK) supplied services to Marathon Oil UK Ltd in connection with the latter’s operation of oil platforms in the North Sea. The appellant proposed an offshore employment model (designed to circumvent the liability to secondary class 1 NICs) whereby it transferred its permanent contract employees to the newly incorporated Bilfinger Guernsey. Following the transfer Bilfinger Guernsey contracted with Bilfinger UK for the provision of...
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