New Tax Rules For UK Workers In Non-EU EEA States

By Editorial 29 June, 2012

UK taxpayers moving to Norway, Iceland or Liechtenstein will face new National Insurance rules which will determine in which country they and their employer pay contributions.

The change is being implemented as a result of European Union regulations coming into force in Norway, Iceland and Liechtenstein. The new 883/2004 and 987/2009 Regulations will replace the existing rules contained in Regulation 1408/71, which the UK had applied to these countries.

The new rules will apply to any individual going to live or work in these countries, and to the employer they work for. Depending on the circumstances, the individual may have to continue paying UK National Insurance contributions (NICs) whilst there or be required to begin paying contributions in that country instead. This applies under both the old and the new rules.

Where the new rules differ is in the stipulation that if an individual is working in the UK for a Norwegian, Icelandic or Liechtenstein employer and is paying NICs in the UK, their employer may also have to start paying UK contributions. The new rules also apply to self-employed people moving between the UK and Norway, Iceland or Liechtenstein.

Special transitional rules have been included in the new Regulations. If an individual was subject to the legislation of the UK or Norway/Iceland/Liechtenstein under the old rules (in force before June 1, 2012), and the introduction of the new rules would change which country they have to pay contributions to, then they may be able to continue paying to the first country until there is a change in circumstances.

Anyone affected is encouraged to contact HM Revenue and Customs for guidance.

Tags: Individuals | Expatriates | Tax | Business | Iceland | Individuals In Business | Entrepreneurs | Employees | Liechtenstein | Norway | United Kingdom | Tax Authority | Professionals | Self-employment | Legislation |


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