As a matter of urgency, employers must check NIC payments paid for internationally mobile employees dating back to 2019 to ensure they comply with the updated guidance about whether NICs are due on earnings paid to these members of staff.

HMRC confirmed that the ‘apportionment approach’ is the correct method for calculating NIC on cash and share-based remuneration for internationally mobile employees.

‘This provides long-awaited clarity on a complex issue,’ said Laurens Forsey, global mobility senior manager at S&W. ‘Employers are now expected to apply the apportionment approach going forward, rather than “all or nothing”, and review and self-correct historic NIC returns via real time information (RTI).

‘This update has significant implications for both future compliance and retrospective adjustments.’

The amend