International social security

Article by Gill Salmons and David Heaton, Employer Consulting Group, Baker Tilly Leeds. This article appeared in the August 2005 issue of Tax Adviser. It is undeniable that international mobility has been increasing over the last few years as globalisation takes hold and businesses expand their operations worldwide. As part of this expansion, many companies send trusted, often senior, individuals to their overseas entities on secondment to enrich their careers and to aid the development of new businesses or to bring fresh expertise to long established group companies. How many of these companies take adequate note of the tax and social security implications of such transfers? With the recent increase in the number of EU member states and the recent wrangling over the proposed constitution this is an ideal time to take stock of recent developments.

In this article the authors are not looking at the income tax or corporation tax side of international secondments, but rather outlining some of the NIC rules and some recent changes on migrant workers within the EU in particular.

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