Suitable for the future? It’s time for the oil and gas industry to pay a tax health check – news for the energy sector

It makes it easy to say that the oil and gas industry has had a lot of controversy over the past year.

With pressure to comply with the Paris climate agreement and open up the future of zero energy, there was a lot in the minds of executives who wanted to make sure their people and companies were fit, with logistics and unpredictable trading conditions due to coronavirus. For the future.

Although the sector is balancing many of its priorities, it is a tax evasion that cannot be ignored – especially as the industry continues to deal with a divided workforce following the epidemic and new modes of transportation for workers behind the new UK.

Back in March 2020, there was an increase in the demand for long-distance work in the UK, especially for people living outside the UK who want to go home to be with their families. Employers have been dispersed for a longer period of time than expected by the tax authorities.

The oil and gas sector is still one example of this. Being abandoned by overseas workers can not only pose a significant risk to charity, but also pose a risk to both the employer and the displaced person.

Matters may include requirements for a new payroll in the employer’s name, creating a tax liability for the employee, and questions about the individual’s tax returns and social security.

Many of the industry’s contractors work overseas, which affects UK tax liability. There are a number of factors that must be taken into account when deciding whether to contribute. Social security is a complex issue for coastal workers. In the last 18 months, the fact that workers may have been seen leaving the UK or vice versa can affect both parties in a variety of ways, including increasing costs for the employer. .

Due to the complex social security laws of overseas workers, it is a good practice to regularly review the position of the working population to ensure that the industry is paying the employer and employee contributions in the right way. We are now looking at questions from individuals who believe they will be reimbursed for the length of time they have left the UK for Part 1 of the UK National Insurance Fund (NCS). They have been working.

After the review, the employee may be offered a discount, but if they do not work for the NIC in the UK, they are responsible for the location where they are currently based and if so, how can this be resolved? In the same way, the same ideas should be given to the employer’s contributions. Divided in the right place and if not, how can this be corrected and contributions to the right authority continue in the future? We recommend that the employer’s and employee’s workplaces be inspected together to ensure a consistent approach and commitment to both parties.

To address additional disposable costs, oil and gas employers must consider the UK’s new immigration rules after the break. A recent survey from Sterling found that 23 per cent of British businesses were comfortable with the new rules, but to ease travel restrictions between the UK and Europe between forums and company offices, the oil and gas industry needs to keep up to date with work-related changes.

From an immigration point of view, there are many legal documents that may be different and companies should be aware of the EU’s labor guidelines.

The final directive was to be passed to national legislation last July, and as that is the only mission, there are differences in how each EU country has adopted the rules and procedures. Some countries, however short-lived, have adopted a ‘belt and belt’ approach that applies to all workers entering the country.

While energy transitions must remain a priority, the industry must ensure that there are robust processes in place to manage and manage any compliance, financial and reputation risks and vulnerabilities for its international employees – especially in the sector. Now more than ever.

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