HMRC has published guidance on the way in which National Insurance contributions for oil and gas workers who work offshore will be paid in future, as part of a move to reduce the use of offshore intermediaries to avoid employment taxes.

The offshore employment intermediaries measure makes changes to the way UK and UK continental shelf (UKCS) workers who are employed by offshore companies will pay tax and NICs.

HMRC states that employers of workers on the UKCS are located outside of the UK and claim not to be liable for employers NICs, while some are also not making employees NICs and income tax deductions in respect of those workers.

Under the new measure there will be a certification system when someone other than the secondary contributor is administering and paying NICs on the secondary contributor's behalf.

Currently the legislation that deals with workers who are engaged in the UK but employed by companies based outside the UK requires the 'person to whom the labour has been made available' to be the secondary contributor for National Insurance and to deduct employees primary NICs.

The proposed revision amends this to make provision for regulations in respect of a certification scheme where someone other than the secondary contributor is paying and administering NICs as the agent of the secondary contributor.

This measure will become effective from 6 April 2014. Details are available HERE