Employing inpat workers can be confusing as an employer. Are these individuals eligible to work in the UK? Will they have to be paid like every other member of your staff? And what about HMRC and NI identities?
Read our very brief guide to get you started…
As an employee
The employee must apply for a national insurance number before commencing work in the UK. However, they can commence work before receiving it and let their employer know it is being processed.
An employee must pay tax and NI contributions unless they have a Portable Document A1, E101 or E102 from a country in the European Economic Area (EEA) or have a certificate from a country which has a bilateral agreement on social security with the UK
The basic rule is that workers are only subject to the social security legislation of one Member State within the EU and other countries. This is normally the Member State where they carry out their work, in this case will be the UK.
The countries with a bilateral agreement are:
Barbados, Bermuda, Bosnia and Herzegovina, Canada, Isle of Man, Israel, Jamaica, Japan, Jersey, Guernsey, Republic of Korea, Macedonia, Mauritius, Montenegro, Philippines, Serbia, Turkey, USA.
As an employer
You must ensure your employee has the right to work in the UK
Your new employee must complete our new starter notification form fully (and return to us before payroll processing day) so that we can deduct the correct amount of tax/NI on the first pay run. It is possible though that a basic rate/emergency tax code will be pulled in to our software from HMRC databases until their records have caught up. We cannot over ride HMRC tax codes.
The employee will not have a P45, but must still complete A, B or C of the above form as well as all other fields.
If BACS payments are made by you/us then check there are no additional charges if paid to foreign bank accounts or ensure your new employee has a UK bank account.
Further topics you may find useful :