After 5 April 2023, these increases will take the form of a levy.
These changes will raise employment costs in general and also for globally mobile and expatriate employees who typically receive guaranteed net pay / compensation (the taxes being paid by their employer). New and current globally mobile employees will cost more after 5 April 2022.
After 5 April 2022 (for employees taxable in the UK and subject to National Insurance)
We have found that as vaccinations progress and border restrictions continue to loosen, more and more cross border employee mobility is taking place. Managing these mobility costs will remain key for all organisations.
In the examples above, annual net pay of £50,000 and £100,000, results in total taxes due by the employer as follows:
These are significant costs but are not always fixed. With careful review and deployment structure planning, these costs can be optimised, thereby reducing overall employment costs.
We have a structured approach to tax planning as part of mobility cost optimisation that considers a number of areas including the below. Contact us to ensure your mobile employee costs are as optimised as possible.
While the new NIC rates will increase overall employment costs, there are ways to significantly reduce tax related in respect of your globally mobile staff. Proper planning is key. We are helping our clients reduce employee mobility costs every day.
If you have any questions or would like to discuss, please get in touch with a member of your Crowe team.