Many businesses have welcomed the news that the Government will introduce a new scheme to…
Employees working overseas on secondment could face paying twice as much in National Insurance Contributions in the event of a no-deal Brexit, HM Revenue & Customs (HMRC) has warned.
If the UK leaves the EU without a withdrawal agreement then current agreements to avoid double payment of the equivalent of National Insurance Contributions (NICs) in member states will be voided.
The EU Social Security Coordination Regulations ensures employers and their workers only need to pay social security contributions such as National Insurance contributions (NICs) in one country at a time.
Employees of UK companies working in the EU member states, European Economic Area (EEA) or Switzerland would, therefore, be expected to pay social security contributions in both the UK and the country where they are seconded.
According to the Chartered Institute of Taxation (CIOT), tens of thousands of employees could be affected. However, those hardest hit are likely to be in the financial services sector, where secondment is more common.
HMRC is advising businesses to make sure they are prepared for any eventuality.
The Government has also issued a draft statutory instrument on social security, which can be found here.