International Tax IssuesThursday, April 5th, 2012
National Insurance –UK and Switzerland
In 2010, the European Commission introduced Regulation 883/2004 which, simply, aligned the different social security regimes of the Member States within the European Union (EU). In the situations of inpatriates and expatriates, where the social security legislation of another Member State applies, no UK National Insurance is due, so long as form A1 is held.
The Regulations did not apply to people going to or from Iceland, Liechtenstein, Norway and Switzerland, as these countries are not EU Member States, though it was always an option that they may join at some point in the future. In that regard, HMRC advises that Switzerland will adopt the Regulations from 01 April 2012 and, for social security purposes, they will be regarded as a Member State.
See the below link for more information and contact your tax advisors, if applicable, for information on how this will impact staff in the future. There are transitional arrangements in place for inpatriates and expatriates already seconded to and from Switzerland pre 01 April 2012.
Double Taxation Arrangement – UK and Montserrat
An Amending Arrangement to the existing Double Taxation Arrangement between the United Kingdom and Montserrat, signed on 09 December 2009, entered into force on 14 March 2012. This is effective for income tax on 06 April 2012 in the UK and 01 January 2012 in Montserrat. The text of the Arrangement is available at the link below.
HMRC Website – Amending Double Taxation Arrangement UK and Montserrat