1. Class 1 Liability Persons Abroad
There is class 1 liability for the first 52 weeks of employment abroad if
the employer has a place of business in GB
the employee was resident in GB immediately before the employment abroad began
the employee is ordinarily resident in GB
A person is generally accepted as being ordinarily resident in GB if he intends to return to GB within 5 years.
/
Overseas governments are accepted as having a place of business for national insurance purposes if they have an Embassy Consulate or other reprentative office
in GB
2.
Employment Abroad
·
Where the above conditions are satisfied the employer in GB continues to meet the liability and contributions are deducted from salary in the normal way.
Where the employer is an overseas government the Agency cannot enforce the liability but, it is open to the person concerned to pay their own share of the class 1 contributions to protect their insurance record. Again the Agency cannot enforce the liability and it is for the to decide how best to protect his record.
person
If the liability is met the insurance record is protected for claims for sickness benefits and unemployment benefit made on return to GB in addition to retirement pension and widows benefits, which can be awarded to persons abroad. If the liability is not met voluntary contributions cannot be paid for the period of the liability and there could be a gap of 1 or 2 years in the insurance record.
Individuals who are liable for their own share of the class 1 contribution must calculate their own liability from rate tables provided, converting their salary to £'s sterling if necessary. Payments should be submitted to the Agency at the end of the tax year with supporting documents. Where salary is above the upper earnings level, £21 060 for the 1992/93 tax year the contribution is £141.57 a month.
3. Voluntary Contributions
After the 52 week period of class 1 liability contributions can be paid voluntarily for complete tax years abroad. Voluntary contributions give cover for pension purposes. They can be paid by direct debit from a UK
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