The Chartered Institute of Payroll Professionals
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New social security convention with Switzerland 1 November 2021
A new social security convention is provisionally applicable from 1 November 2021. The terms coordinate the UK and Swiss systems now that the Swiss-EU Free Movement of Persons in no longer in effect due to Brexit.
HMRC has updated guidance online to advise on where NI is due on employments that take place in the UK and Switzerland. The guidance explains this for both UK individuals in Switzerland and Swiss workers in the UK.
Employees will continue to pay NI or social security in a single country if they have been issued with the relevant certificate. The employee or employer can apply for the certificates if the employee is:
• Working temporarily in the other country for up to 2 years • Working in both countries • A civil servant working in the other country for their own government • Working on board a sea vessel with your home country’s flag • Working as a flight or cabin crew member
Applications for these certificates are available on the guidance page and differ dependant on the employee’s situation.
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National Insurance for company directors – changes to guidance on going to, or coming from, abroad 4 November 2021 Her Majesty’s Revenue and Customs (HMRC) has updated its company director National Insurance (NI) guidance for 2021-22. The guidance now differentiates between countries that we have a social security agreement with, and those that we do not.
Below are the updated sections within the guidance:
In a country that the UK has a social security agreement with
The general rule is that a director will pay contributions to the social security scheme of the country in which they are working, unless they are entitled to, and hold a certificate issued by HMRC.
The certificate will exempt the director from having to pay social security contributions in the other country.
Director goes to work abroad
For more information about directors leaving the UK to work in: • the EU, Iceland, Liechtenstein, Norway or Switzerland, go to www.gov.uk/guidance/national-insurance-for-workers-from-the-uk-working- in-the-eea-or-switzerland • another country with which the UK has a social security agreement, go to www.gov.uk/national-insurance-if-you-go-abroad
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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