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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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we have an employee who is a Canadian national. she arrived

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Hello we have an employee who is a Canadian national. she arrived in September and will return to Canada in June. Will she be able to reclaim her national insurance contributions when she leaves the UK, or is there something we could have done to minimise her NI contributions?
Hello and thank you for allowing me to assist you.
All UK employees under Retirement Pension age are liable to Class 1 National Insurance Contributions if their earnings are above a certain level for that year.
This is so even for a UK nonresident that has been working in the UK for less than 1 year. If during that tax year their earnings were above the required level then they were liable to pay Class 1 National Insurance contributions. The contributions they have paid have, therefore been correctly deducted and there is no refund due them.
For employees coming to work in the UK from abroad you must operate PAYE tax and NICs in the usual way, whether they’re working for you on a temporary or permanent basis.
There are a few exceptions. An employee who has been sent to work in the UK won’t have to pay NICs in the UK if they are from a country which is outside of the EEA, or Switzerland, or with which the UK has an RA or DCC agreement - they’ll be exempt from paying UK NICs for the first 52 weeks of their employment here provided that the following conditions are met:
they’re not ordinarily resident in the UK
they normally work outside the UK for a foreign employer
they’re sent to work in the UK for a time by that foreign employer
when in the UK they continue to work for that employer
The DCC countries are: Canada, Republic of Korea and Japan.
If they were not sent to work in the UK but came and was hired by your UK company then that would not apply.
You stated you did not know where to go for information:
You can copy and paste the above url for the HMRC page on this.
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