OT45465 - Non-residents working on the UK continental shelf: Guidance for offshore employers and agencies with workers on the UK continental shelf: Exemption for licensee from recovery of income tax and National Insurance Contributions - new cases

Income Tax (Pay As You Earn) Regulations 2003, regulations 84A - 84D 

Social Security (Contributions) Regulations 2001, regulations 114 and 114A – D 

Where the application is the first contact between the offshore employer and LB Oil and Gas it is necessary for LB Oil and Gas to form a judgement on whether the employer is likely to comply with paying secondary Class 1 National Insurance contributions (NICs) and operating PAYE.  Each application is considered on its own merits. 

To assist LB Oil and Gas in reaching a decision on the application, the applicant should be prepared to undertake or provide the following: 

  • The non-resident employer should set up a Real Time Information (RTI) Scheme with HMRC as if it were in the UK and comply with the requirements to operate PAYE and Class 1 NICs, including secondary Class 1 NICs.   

  • The name and address of the employer. 

  • The PAYE reference number.  

  • The name and address of a person in the UK who is authorised to accept service on their behalf.  

  • Confirmation that the employer understands and intends to discharge the Oil and Gas field licensee’s obligations. 

  • The name, address and PAYE reference number of any associated company which is a current or former holder of a UKCS worker certificate.  

  • The name, business address and oil field license number(s) of the person who holds the license of the oil field to whom you supply or intend to supply a UKCS worker. 

  • A description of the UKCS workers for whom the UK Continental Shelf oil field licensee certificateholder will be exempt from paying contributions. 

Exemption continues until the certificate is cancelled by the Oil & Gas Team.  See OT45470. 

If it is not considered appropriate to issue a certificate to an applicant, then the applicant will be advised of the refusal in writing by HMRC. For reasons of confidentiality the Oil and Gas Team does not inform a licensee when or why it is decided not to grant exemption in respect of a particular offshore employer.