NIM01572 - Class 1 Structural Overview: zero-rate of secondary NICs for Freeport employees: examples: Example 2 바카라 사이트“ 60% rule met at start of employment but under 60% in a week, not a substantial change in the earner바카라 사이트™s working arrangements, earnings above the FUST
Example 2 바카라 사이트“ 60% rule met at start of employment but under 60% in a week, not a substantial change in the earner바카라 사이트™s working arrangements, earnings above the FUST
An employee works for an employer which has business premises in a Freeport tax site.
The employer hires an employee on 1 July 2022 who is paid £5,000 per month gross by the employer (£60,000 a year). At the start of the employment, the employer reasonably expects that the employee will spend 3 days (18 hours, 60% of their working week) at the employer바카라 사이트™s business premises in a freeport tax site and 2 days (12 hours, 40% of their working week) visiting clients so the employee meets the 60% rule.
However on one occasion, acting as cover for their manager who one day in a month attends a board meeting at the head office in Manchester, when normally working in the freeport tax site, they attend on their behalf. This reduces their time in the Freeport that week to 40%. This isn바카라 사이트™t a substantial change in the earner바카라 사이트™s working arrangements so the employer would not be required to stop claiming the relief. Should the employee continue to attend Board meetings to the point where there is an expectation that the employee attends the Board meeting, then the employer can no longer reasonably expect the employee to meet the 60% rule and must stop claiming the relief.
The employee wasn바카라 사이트™t employed by the employer or a connected employer in the previous 24 months.
The employer is a qualifying employer and the employee is a qualifying employee, so the employer can claim the relief. However, as the employee바카라 사이트™s earnings are much more than the Freeport Upper Secondary Threshold (FUST) of £2,083 per month then the employer will pay secondary National Insurance contributions for this employee on all earnings above the FUST.