NIM33510 - people going to or coming from abroad: row: conditions as to residence and presence in GB - employers

Regulation 145(1)(b) SSCR 2001

Employers are liable to pay secondary Class 1 NICs if:

• resident
• present; or
• have a place of business in GB.

Generally, an employer can be said to be resident, present or in the UK if the registered office of the company is in the UK, even if no actual business is carried on there.

Place of business is not defined in social security legislation, when considering whether there is a place of business in Great Britain or Northern Ireland we would look for evidence such as:

• a name plate displayed on the door or premises,
• letter headed paper
• a listing in a phone directory,
• a lease or rent agreement or some sort of financial transaction for the use of the premises, is the company paying the employee’s rent or mortgage
• consent from the owner to use the premises,
• a registered office in the UK,
• registration as a company incorporated outside the UK but with a place of business here for the purpose of the Companies Act 1985
• fixed premises in the UK
• delivery of supplies to the company in the UK
• the company having a bank account in the UK

Whether an employer satisfies the tests will be a matter of fact.

If the contractual employer does not satisfy the conditions as to residence or presence in Regulation 145(1)(b) somebody else may be treated as the secondary contributor and the employer for NICs purposes, see NIM33700 and ESM2000.