Jurisdiction(s):
United Kingdom

Upper Tribunal confirms UK host employer liability for secondary Class 1 NICs under para 9; no minimum direction or control required (Bilfinger Salamis UK Ltd v HMRC)

Published on: 10 April 2026

Published by a LexisNexis Tax expert

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Bilfinger Salamis UK Limited v HMRC [2026] UKUT 143 (TCC)

BUK delivered services to a North Sea oil platform operator (M) using its own staff. The arrangement was later reworked into an offshore employment model designed to avoid secondary Class 1 National Insurance contributions, namely employers’ NICs. The core group of BUK employees was transferred to a Guernsey subsidiary, Bilfinger Guernsey (BG), and BG then supplied the labour for M’s benefit. BUK nevertheless remained the contracting party with M, and there was no contract in place between M and BG. Separately, BG contracted with BUK to provide labour, scaffold and equipment. The core team of BG employees operated on M’s oil platforms in discharging BUK’s contractual obligations to M (see UT at [6], [7] and [31], the latter referring to FTT at [218]). The issue before both the FTT and the UT was whether paragraph 9 of Schedule 3 to the Social Security (Categorisation of Earners) Regulations 1978 (para 9) applied so that, although the workers were employed by BG, a non‑UK employer, BUK was liable for secondary Class 1 NICs on the BG employees’ earnings. During the...

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