BDO Payroll Newsletter - November 2019

PAYROLL ON POINT NOVEMBER 2019

CONTENTS X X Tracking your globally mobile employees X X IR35 and off-payroll workers X X Average holiday pay X X HR solutions – update X X Managing transfer pricing risk via payroll X X Accelerate workshops – let’s kick it up a gear X X Paying our fees by direct debit – reminder

Welcome to the autumn edition of Payroll on Point. This newsletter is designed to help you keep up to date with legislative changes, new developments and key dates in the future. We hope you will find Payroll on Point informative and if you have any questions on the topics raised please don’t hesitate to get in touch. Kind regards,

MARIA MASON DIRECTOR

BREXIT – UK NATIONALSWORKING INTHE EU

We had all hoped that there would be more clarity on Brexit by now, but even though the terms of the UK’s departure from the EU remain unresolved, there are some key points to take account of now. GLOBALLY MOBILE EMPLOYEES If the UK agrees a deal with the other 27 EU member states, a transition period will come into force. A series of rules in relation to social security coordination have already been agreed for this scenario and these rules will be applicable until 31 December 2020 (or possibly later). We would expect the UK Government to enter into discussions with the EU during this period to agree further rules which will be applicable after the transition period.

Should we leave the EU without a deal, there will be no transitional arrangements and a direct social security impact on employees that you have sent/are sending to work in the EU, the EEA or Switzerland. If an employee with a UK-issued A1/E101 was already working in the EU, EEA or Switzerland, NIC would be paid in the UK until the form expiry date. If the end date is after the eventual Brexit day, the relevant EU/EEA/Swiss authority should be contacted to determine whether social security contributions will be due in that country. Helpfully, new social security agreements with Ireland and Switzerland have already been agreed. The agreement with Ireland will come into effect from Brexit day in the event of a ‘no-deal’ Brexit, but the UK and Switzerland have also completed a transitional social security agreement that would will apply until 31 December 2020 even if the UK leaves the EU without an agreement in place.

IDEAS | PEOPLE | TRUST

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PAYROLL ON POINT | NOVEMBER 2019

BREXIT – UK NATIONALSWORKING INTHE EU (CONTINUED)

The UK also has historical social security reciprocal agreements with the following EU/EEA states – Austria, Belgium, Croatia, Cyprus, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Slovenia, Spain and Sweden. These agreements were in place to avoid double social security contributions liabilities arising. However, it is unclear whether the countries concerned will implement the agreements. In the event the UK leaves the EU without a withdrawal agreement, the Government has stated that it will keep these reciprocal agreements under review. Whether these come back into force will be subject to discussion and agreement between the UK and the relevant EU Member State. WHAT CAN YOU DO NOW? UK employers with employees currently working in the EEA should now consider whether: X X They would have additional social security contributions costs as a result of a no-deal Brexit X X They would have additional employer reporting and compliance obligations to ensure social security compliance on a country by country basis. BDO has an extensive network of social security specialists throughout the EEA. For help and advice please get in touch with your usual BDO contact, [email protected] or [email protected] .

PAYROLL SERVICES Finally, we would just like to confirm that, whatever happens, there will be no impact to the delivery of our payroll service to you. We hold all your payroll >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8

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