NI - Working Abroad

NI - Working Abroad

Didn't find your answer?

Client left the UK in November 2013 to work in Thailand for a UK employer.  Prior to this he had been employed/resident in the UK for many years.

My understanding is that Class 1 NI is only due on his earnings for the first 52 weeks that he's employed overseas but it is still being deducted.  Should it have stopped automatically after 52 weeks?

he can complete form CF83 so that he pays voluntary Class 2 NI instead of Class 1 & this will maintain his NI record & entitlement to contributory benefits.  If he does this, will NICO automatically inform his employer to stop deducting Class 1?  And will he be entitled to a refund of the Class 1 he has paid that he didn't need to?

Replies (2)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
16th Sep 2015 10:22

Yes - NICs should have stopped after 52 weeks

As Thailand is neither in the EEA nor has a social security agreement with the UK (see the guidance), the employer should have stopped taking and paying Class 1 NI contributions in November 2014.  It is not a case of waiting for HMRC to notify the employer to stop taking NIC - the employer has failed to operate PAYE correctly.

If you submit form CF83, HMRC will presumably start taking Class 2 NIC (if that is what you opt for, rather than Class 3) from the individual, but I doubt that NICO would inform the employer.

I would suggest that the client should tell his employer that they had no right to take Class 1 NIC from his pay after November 2014, to refund to him the overpaid NIC and to stop taking any further Class 1 NIC.  It is up to the employer to file an Earlier Year Update for 2014/15 to adjust the NIC figures for both employee and employer.

Thanks (0)
avatar
By Wall1690
01st Feb 2016 15:55

The employer has been advised that Class 1 NI deductions should have ceased 12 months after the overseas contract started.  However, they are continuing to deduct Class 1 NI & say they will continue to do until advised to stop by HMRC.  They refuse to stop deducting NI based on the employee's request.  What can the employee do?  Is it down to him to contact HMRC & ask them to issue a stop notice to his employer?  And what can he do about the overpaid  NI in earlier years?

As a matter of interest, does the employer have to pay Employers contributions or should they have stopped too?  

Thanks (0)