Does payroll give you a headache each pay run?
Our previous blog post on social security focused on workers being posted to the UK from overseas or from the UK to an overseas country to work, but what is the position if someone works in more than one country? This post will explain the position for multi-state workers in the European Economic Area (EEA).
The 2017/2018 tax year will see the United Kingdom introduce a variance between Scottish Rate taxpayers and the rest of the UK.
The National Insurance contributions (NICs) holiday applied to new businesses, in specific locations, including Scotland, that started during the period 22 June 2010 to 5 September 2013. Subject to meeting certain conditions, eligible businesses were able to claim up to £5,000 as a deduction from the employer NICs due for each of the first 10 employees they employed during the holiday period.
Management teams and Boards are increasingly under pressure to consistently improve and remain up to date with the latest legislation, technology and guidance on corporate governance issues as well as treating employees fairly, safeguarding assets and creating long term sustainability for the business. It can be overwhelming to manage all of these aspects in today’s environment.
Most UK resident employers who assign employees to work overseas will have a foreign wage tax-withholding obligation (i.e. they run an international payroll alongside their UK payroll).
To avoid having to deduct both UK PAYE and foreign wage tax from their employee salaries many employers seek permission from HMRC to operate an Appendix 5 Net of Tax Credit Scheme.