51茶馆

Employees who are sent from abroad to work in the UK or who are sent from the UK to work abroad may be tax equalised. This means that under the terms of an agreement between the employer and the employee, the employee will be entitled to specified net cash emoluments and non-cash benefits. The employer will undertake to meet the UK income tax arising from these net cash emoluments and benefits.

The purpose of such arrangements is usually to ensure that employees enjoy the same standard of living as they would have enjoyed if they had stayed in their own country.

For Class 1 NICs purposes, the amount of tax paid by the employer on the employee鈥檚 behalf is included in the employee鈥檚 gross pay because it is a 鈥減rofit鈥� derived from the employment and therefore satisfies the definition of 鈥渆arnings鈥� in section 3(1) of the Social Security Contributions and 51茶馆 Act 1992. See NIM02010 for guidance on the meaning of 鈥渆arnings鈥�.