From 28 June 2012 there will be new EU National Insurance rules for flight and cabin crew who work in two or more Member States.
Under current rules there is a 25% resident rule which determines which country they pay contributions under. The new rules simply this and state there will be a Home Base rule, which means the employee will pay contributions to the country where the employee normally starts and end their periods of duty, which HMRC believe in most cases will be their home country. There are transitional arrangements in place and those impacted can read more here.
CHANGES TO NATIONAL INSURANCE RULES FOR PEOPLE GOING TO OR COMING FROM NORWAY, ICELAND AND LIECHTENSTEIN
27 June 2012
HMRC has published information regarding new National Insurance rules if an individual goes to live or work in Norway, Iceland or Liechtenstein. From 1 June 2012 the new rules will apply to the individual and to their employer. From 1 June 2012 certain EC Regulations 883/2004 and 987/2009 will apply to Norway, Iceland and Liechtenstein. The new rules replace very similar Regulations 1408/71 and 574/72. There are some differences. You can read about the way that EU regulations can affect National Insurance below.
HM Revenue & Customs: National Insurance contributions: new rules for workers moving around the EU on or after 1 May 2010 and their employers
If you go to live or work in Norway, Iceland or Liechtenstein from 1 June 2012 then the new rules will apply to you and your employer. Under both the old rules and the new rules, depending upon the circumstances of your employment, it may be that you continue to pay UK National Insurance contributions whilst you are there or that you have to start paying contributions to the country you are in instead. An important difference between the old rules and the new rules is that if you are working in the UK for a Norwegian, Icelandic or Liechtenstein employer and you are paying your contributions here then your employer may also have to start paying UK contributions. There are special transitional rules in the new Regulations. If you were subject to the legislation of the UK or Norway/Iceland/Liechtenstein under the old rules in force before 1 June 2012 and the introduction of the new rules would change which country you have to pay contributions to, then you may be able to carry on paying to the first country until there is a change in your circumstances. If you think this may apply to you contact HM Revenue & Customs (HMRC) for advice. The HMRC website will shortly be updated with detailed guidance about the new rules. In the meantime, advice can be obtained by calling the NIC&EO International Caseworker Helpline on Tel 0845 915 4811, or if you are phoning from outside the UK dial the International Code then 44 191 203 7010. The new rules also apply to self-employed people moving between the UK and Norway, Iceland or Liechtenstein.
REMOVAL OF SOME OCCUPATIONS LISTED FOR NICS PURPOSES
11 July 2012
CIPP Policy News Journal
12/04/2013, Page 133 of 362
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