What is a detached worker
A detached worker is an employee who is sent by their employer to carry out a specific task in another country on a temporary basis.
If I am a resident and I am sent to work outside of the Isle of Man where am I liable to pay my National Insurance contributions?
If an employee who remains employed by an Isle of Man employer is sent by that Isle of Man employer to work in another jurisdiction, National Insurance contributions will continue to be payable in the Isle of Man for the first 52 weeks after leaving the Isle of Man (starting from the first Sunday after the employee arrives). Once the 52 week period has finished, the individual will in most cases (but see below) no longer be liable to Isle of Man National Insurance Contributions and the Isle of Man employer will no longer be required to deduct NICs.
If the employee has been sent by the employer to a country with which the Isle of Man has a reciprocal agreement (with the exception of the UK), they or their employer may request a 'certificate of detachment' from the IOM, which may allow them to continue to pay contributions in the IOM beyond the initial 52 week period.
If I am a resident and I work for an employer outside of the Isle of Man, carrying out all duties on the Isle of Man
A detached worker is one where the Isle of Man employer sends an Isle of Man employee to work in another jurisdiction.
If you are working for an employer outside of the Isle of Man we would need to confirm your employment status. You would be responsible for your tax and National Insurance contributions in the Isle of Man, which may include setting up an employer role if you are categorised as employed.
If I am a Non Resident and I am sent to the Isle of Man to work where am I liable to pay my National Insurance Contributions
The IOM has Social Security Reciprocal Agreements (RA’s) with a number of countries, which include special rules for how income from employment received by a national or resident of one, or both countries, is to be treated. The aim of these RAs is to ensure that there is not a liability to pay Social Security in both countries, but to ensure that the individual has a right to pay NICs in one of the two countries.
The closest reciprocal agreement the Isle of Man (IOM) has is with the United Kingdom (UK). This agreement effectively treats the IOM and UK as a single area for liability to NICs. This means that where an employer in one country has staff working in the other country both the employee and employer will remain liable to National Insurance as though both were in the same country. The contributions can be paid to either the IOM or UK.
If an employee comes to the IOM from a country with which the IOM has an RA (other than the UK) they may provide the Division with a certificate of detachment (or A1 European equivalent form), which will allow them to continue to pay contributions to their home country.
Which countries does the Isle of Man have Reciprocal Agreements with?
Austria, Barbados, Belgium, Bermuda, Bosnia, Canada, Chile, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Guernsey, Hercegovina, Iceland, Ireland, Israel, Italy, Jamaica, Japan, Jersey, Korea, Luxembourg, Macedonia, Malta, Mauritius, Montenegro, Netherlands, New Zealand, Norway, Philippines, Portugal, Serbia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States of America.
How can I apply for a Certificate of Detachment?
Please contact the National Insurance Team by email at firstname.lastname@example.org or by telephoning +44 1624 685400 and a form can be issued in the post.
Once received your form will be processed and if you meet the criteria a Certificate of Detachment will be issued to your employer.
What should I do if my period of work is shortened/extended?
You should contact the National Insurance team to advise of any changes immediately.
Where your period has been extended then you may be liable for National Insurance contributions in the country where the work is being carried out.