HMRC has published new guidance on how National Insurance Contributions (NICs) should be calculated for internationally mobile employees (IMEs), clarifying a technical but important area for employers with cross-border workforces.
The update confirms a shift to the ‘apportionment approach’, under which remuneration such as salary, bonuses, and certain share awards must be proportioned according to the period during which an employee was liable to UK NICs while the reward was earned.
What this means for your clients
For businesses employing internationally mobile staff, this introduces a new layer of complexity in determining payroll obligations and social security compliance. Deferred bonuses, cross-border secondments, and global share awards all require close review.
HMRC expects employers to correct historic filings through the RTI payroll system, potentially for up to six prior tax years, and to ensure future compliance through robust record-keeping and process updates.
How Corridor supports your firm
For professional services firms advising multinational clients, this is an opportunity to deepen your advisory relationships.
Through Corridor, you can access Abbiss Cadres’ multi-disciplinary expertise across employment law, tax, HR, and global mobility, giving you the resources to:
- Advise clients confidently on complex NIC compliance questions
- Review and correct historic payroll submissions
- Support with share plan design and cross-border tax treatment
We work discreetly under your brand or alongside your team to strengthen your offering, ensuring your clients remain compliant and informed.
Get in touch with Corridor to discuss how we can help you support your clients with HMRC’s updated NIC guidance.
The guidance is available in HMRC’s National Insurance Manual (NIM33650).
