Offshore company and Employer's National Insurance question
Discussion
Hello all, hopefully someone may know the answer to the following 2 questions:
1. Does an offshore company employing someone in the UK have to pay employer's national insurance?
2. Does the Offshore Company have to register for PAYE (ie q1 above) or is it easier to just pay the employee and have the employee pay employee's NI only?
Many thanks
1. Does an offshore company employing someone in the UK have to pay employer's national insurance?
2. Does the Offshore Company have to register for PAYE (ie q1 above) or is it easier to just pay the employee and have the employee pay employee's NI only?
Many thanks
BrendonJ said:
Hello all, hopefully someone may know the answer to the following 2 questions:
1. Does an offshore company employing someone in the UK have to pay employer's national insurance?
2. Does the Offshore Company have to register for PAYE (ie q1 above) or is it easier to just pay the employee and have the employee pay employee's NI only?
Many thanks
No idea, but It's likely to matter where the company is based off-shore.1. Does an offshore company employing someone in the UK have to pay employer's national insurance?
2. Does the Offshore Company have to register for PAYE (ie q1 above) or is it easier to just pay the employee and have the employee pay employee's NI only?
Many thanks
If the employee is tax resident and performing his duties in the UK, yes it does.
Think of all the foreign multinationals who operate in the UK but who have UK employees.
If the company has no UK base, then it needs to appoint a UK agent (often a firm of accountants or a payroll bureau) to administer the PAYE and NI affairs of the company in the UK. I know this because a number of years ago I was acting as a payroll agent for just such a set up - which only had one UK employee - a salesman.
Think of all the foreign multinationals who operate in the UK but who have UK employees.
If the company has no UK base, then it needs to appoint a UK agent (often a firm of accountants or a payroll bureau) to administer the PAYE and NI affairs of the company in the UK. I know this because a number of years ago I was acting as a payroll agent for just such a set up - which only had one UK employee - a salesman.
Hi Brendon
This is a very complex area, dependant on a number of factors such as which company the individual is actually employed by, the type of work being carried out in the UK, whether there is a place of business in the UK (this doesn't necessarily have to be a commercial property). These are just a small number of the points for consideration and a lot more detail is required. It's not a simple yes or no answer unfortunately - not what you wanted to hear I'm sure!
Feel free to PM me if you need some detailed advice on this. I've worked in the expat/employment tax field for over 10 years and would be happy to have a chat with you to better understand the position.
This is a very complex area, dependant on a number of factors such as which company the individual is actually employed by, the type of work being carried out in the UK, whether there is a place of business in the UK (this doesn't necessarily have to be a commercial property). These are just a small number of the points for consideration and a lot more detail is required. It's not a simple yes or no answer unfortunately - not what you wanted to hear I'm sure!
Feel free to PM me if you need some detailed advice on this. I've worked in the expat/employment tax field for over 10 years and would be happy to have a chat with you to better understand the position.
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