Where a UK employer sends its employee to work overseas, NIC liability does not automatically stop (unless the departure from the UK is permanent, or for at least five years so that the individual loses UK ordinary residence), as it is assumed that the individual’s benefit rights will need protection during her absence. Class 1 continues to be payable (unless Contributions Regulations 2001, reg. 146(2) is defective – see below) for 52 weeks on all of the employee’s earnings from the employment if all of the following conditions are fulfilled:

the employer has a place of business in the UK;

the earner is ordinarily resident in the UK; and

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