US company Pension requirement in UK

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Nik83
Nik83 Posts: 2 Newbie
in Pensions, annuities & retirement planning
Hi!
I’m employed under NY law by a company based in the US. I live and work remotely in the UK. for this company. (They are not a subsidiary in UK) Can anyone advise on whether my employer is required to have some kind of pension scheme for me? I am the only employee outside the US and totally stuck for info!
Thanks
Nick

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    What happens with NI? Are they paying that?

    I cant comment on the legalities, but regards a pension, I suggest pragmatically the best solution would be for them to pay you an amount "earmarked" for your pension that you pay into your own private pension. And you can of course add your own contribution.

    That really needs to be negotiated as part of the initial employment offer, it might be harder to do after the event. Many years ago and well before current pension laws that's what a friend of mine did who was employee number 1 in Europe for a US company, it just wasn't realistic for them to set up a pension for one person.
  • Chickereeeee
    Chickereeeee Posts: 1,187 Forumite
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    AnotherJoe wrote: »
    What happens with NI? Are they paying that?

    I cant comment on the legalities, but regards a pension, I suggest pragmatically the best solution would be for them to pay you an amount "earmarked" for your pension that you pay into your own private pension. And you can of course add your own contribution.

    That really needs to be negotiated as part of the initial employment offer, it might be harder to do after the event. Many years ago and well before current pension laws that's what a friend of mine did who was employee number 1 in Europe for a US company, it just wasn't realistic for them to set up a pension for one person.


    That is what I did in a similar situation.


    Followed soon afterwards by setting up a Ltd company to start acting as their UK subsidiary....
  • xylophone
    xylophone Posts: 44,499 Forumite
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    I live and work remotely in the UK. for this company. (They are not a subsidiary in UK)

    http://www.hmrc.gov.uk/gds/nic/work/embassy.htm

    Where there is no business in the UK (or in the European Economic Area (EEA)) responsible for deducting National Insurance, the employee must pay his or her own Class 1 National Insurance to HM Revenue & Customs (HMRC).


    https://shieldgeo.com/uk-workplace-pension-scheme-a-guide-for-international-companies/

    If you are a company that employs workers in the UK, you need to be aware of the ongoing rollout of new UK workplace pension scheme requirements and contributions, which will now affect any size company. The mandatory regulations are complex, and have exceptions or opt out choices that can affect the cost of doing business in the UK and administering a local payroll. In general, if you employ either a UK citizen or a foreign national under a UK contract, you are obligated to comply with the pension law.

    Above may be relevant.
  • squirrelpie
    squirrelpie Posts: 966 Forumite
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    Where are you paid? Where do you pay tax? Where are you resident and domiciled?



    It sounds to me that your firm should be paying for you to consult an international employment lawyer for advice on how to set up their business in the UK. The likes of Eversheds or Doyle Clayton, maybe.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 16 October 2018 at 1:46PM
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    If you are actually an employee of this NY company rather than a contractor then they must abide by all UK employment laws. That includes pensions, holidays, and importantly taxation and NI.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • robber2
    robber2 Posts: 558 Forumite
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    Nik83 wrote: »
    Hi!
    I’m employed under NY law by a company based in the US. I live and work remotely in the UK. for this company. (They are not a subsidiary in UK) Can anyone advise on whether my employer is required to have some kind of pension scheme for me? I am the only employee outside the US and totally stuck for info!
    Thanks
    Nick




    Is the company large enough to have an HR department? If so its really their responsibily to ensure they are complying with UK employment legislation.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    Nik83 wrote: »
    Hi!
    I’m employed under NY law by a company based in the US. I live and work remotely in the UK. for this company.

    If you live and work in the UK then your statement is wrong. You must be employed under UK law and comply with UK rules and regs. How are you paying UK tax and NI?
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • MEM62
    MEM62 Posts: 4,763 Forumite
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    Nik83 wrote: »
    Hi!
    I’m employed under NY law by a company based in the US. No, you are not. You are working and resident in the UK and therefore your employer is subject to UK employment legislation. I live and work remotely in the UK. for this company. (They are not a subsidiary in UK) Can anyone advise on whether my employer is required to have some kind of pension scheme for me? As far as I understand the rules, yes. Auto enrolment at the minimum. I am the only employee outside the US and totally stuck for info!
    Thanks
    Nick

    I would ensure that your employer understands that they are subject to UK rules and regs. Who runs your UK payroll? Is this being done correctly with tax and NI being deducted / paid properly?
  • molerat
    molerat Posts: 31,931 Forumite
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    edited 16 October 2018 at 3:33PM
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    Who does your payroll, who pays your tax and NI. There are several different scenarios and one of them is that it is all down to you to organise.

    http://www.hmrc.gov.uk/gds/nic/work/embassy.htm
    https://www.taxation.co.uk/Articles/2013/07/17/310691/personal-paye
    http://help.thepensionsregulator.gov.uk/faq/general/Contact-Us/
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    Reposting my reply from the "Cutting Tax" board:
    londoninvestor wrote: »
    As far as I can see, the answer is yes, assuming you're between 22 and state pension age. (Outside that age band, auto-enrolment isn't a requirement.)

    Document from the Pensions Regulator.

    Note page 7, para 13:
    Pensions_Regulator wrote:
    The final point to note about the definition of worker in paragraph 9 is that the physical location of the employer is not a determining factor when considering an individual’s status as a worker, eg the employer may be based outside the UK.
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