By Nichola Ross Martin
HMRC has published guidelines in on how to apportion UK and Non-UK earnings for Class 1 and 1A National Insurance purposes.
The new guidelines are in Tax Bulletin 79. Previous guidance in TB 59, 63 and Statement of Practice 5/84 explained how to compute "non-UK workdays" for tax. However, these are not the same for NIC purposes, and some employers will have operated NIC on the whole salary and refunds may be due.
This scenario arises where the employee is not covered by the EC Treaty and EC Regulations 1408/71, by bi-lateral Social Security agreements, Regulation 145 (1) or Regulation 146 Social Security (Contributions) Regulations 2001 and where the employee is:
* not ordinarily resident in the UK,
* works in the UK under contract to their foreign employer, and