10 February 2021: HMRC is to contact around 500 large and 156 medium-sized businesses about the availability of Appendix 7b arrangements for managing NIC reporting obligations for employees assigned from the UK work overseas.

Appendix 7b arrangements or modified national insurance contributions (NIC) arrangements allow the following:

• simplified reporting obligations in respect of NIC on earnings paid to outbound assignees;
• estimation of earnings from sources other than the UK, where exact details of those earnings are not available; and
• reporting of actual earnings and the correct amount of NIC up to 31 March after the end of the tax year in which the earnings are received. At that stage the employer can either pay the balance of NIC due or claim a refund.

The targeted awareness campaign started in the week commencing 1 February and aims to reach businesses with employees on outbound assignments but where there is no Appendix 7b arrangement in place.

Large employers will be contacted by an email containing a link to a survey containing questions which require yes or no answers. Meanwhile, Medium-sized employers will be sent a letter with the survey attached.

The survey includes various questions about appendix 7B registration, whether the employer has a system in place already to manage their NIC obligations and also asks employers if there are any issues which they wish to disclose as a result of reading the communication and answering the questions.