In certain sectors, employers set up overseas to fall outside of the requirement to pay NIC/PAYE. Such employers post UK workers to work in the UK but no employer’s NIC is paid. HMRC has some recourse against those further down the supply chain but enforcement is difficult. HMRC has consulted on ways to ensure it receives the tax/NIC due. The original proposals have been abolished. In their place are proposals to place the tax/NIC burden on the last intermediary in the supply chain, with a specific set of rules for the oil and gas sector. These changes could result in some of these arrangements coming onshore.
