NIC settlements for outbound employees with UK employer

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Employment Tax

Guidance

STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

HMRC offers two arrangements that relax the strict PAYE procedures in respect of social security / NIC. One of these is the modified NIC arrangement covering outbound employees who are UK nationals, but who have been sent to work on an overseas assignment by a UK employer, known as ‘EP Appendix 7B ― Modified Class 1 NIC for employees assigned from the UK to work overseas’ (EP APP 7B). The EP APP 7B application form is available at PAYE82004.

Scope of agreement

A modified NIC settlement scheme is available for UK employers that have employees seconded abroad and where their employee satisfies

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Paul Tew

Writer and advisor at Paywatch

Paul Tew is a freelance adviser, primarily in the areas of pay, personal taxation and remuneration planning. A frequent contributor to technical journals on pay and benefits issues, having written for the "In Business" section of the Times. Paul continues to supply articles for various recognised professional publications including Pay and Benefits magazine, Taxation magazine and Company's Secretary's Review. Paul also has had several loose leaf and bound books published on a variety of subject matter including PAYE, NIC, Sickness and Maternity Pay. Paul has written and presented training courses as well as headed up payroll and employment help desks and acted as an assessor for recognised Payroll/HR qualifications. Paul previously worked in the healthcare and oil sectors managing Pay and benefit services, so has many years of experience in dealing with PAYE and employment compliance issues across a broad range of industries and organisations.

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