Sep 2014
24
Employees coming to work in UK from abroad – Employer’s General Rules and NICs
Employers must operate PAYE and NICs in the normal way regardless if your foreign employees are working for you on a permanent or temporary basis. You are still treated as their employer and you are responsible for recording, reporting their earnings and PAYE deductions.
Your new employee from abroad will not have a required HMRC P45 so you’ll need to get the following information from them:
Full Name; Gender; Date of Birth: Full Address (incl. Post Code); National Insurance Number (if known).
To process what deductions are taken from their pay you must get an employment declaration and enquire if they have an existing student loan. For further information please click on the following HMRC link: https://www.gov.uk/new-employee-coming-to-work-from-abroad
Employees being paid by another overseas company are called “seconded employees”. If your new employee falls within the definition of a seconded employee, you are responsible for PAYE deductions on their earnings but what tax code to use and what to include in their payroll record are different. If you have a seconded employee on your payroll you must report this to HMRC.
For more information regarding seconded employees and exceptions to the rule please click on the following link http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=2Abcj2SjIsA&formId=7398
Please remember, before employing someone from abroad, you are required to check this new employee has the legal right to work in the UK, please use the following online tool to assist you:
https://www.gov.uk/legal-right-work-uk
