The CWG2 (Further Guide) Change 18 September 2023

The all-important CWG2 was first published on 20 February 2023 for tax year 2023/24.? It has been updated 7 times since then, the latest update on 18 September 2023.

The CWG2 is our go-to place for Income Tax and National Insurance issues where we require ‘more detailed information’ or information covering ‘some less common situations’.??

As such, it is an important document for employers should have, though useless if we don’t have the most up-to-date version.?

Here is the recent update.? Please ensure you have the latest version (dated 18 September 2023):

The update reads:

It is far too easy to replicate this statement and call it news.? So here is an explanation of what the update means:

This section is entitled ‘Employees coming to or leaving the UK — treatment for National Insurance contributions purposes’.? It’s all about countries with who the UK has an arrangement that says, simply, that National Insurance Contributions will only be paid in one country.? Such arrangements may be in the form of the UK / EU withdrawal agreement, the UK / EEA EFTA Separation Agreement or Social Security Agreements and Orders.?

The Isle of Man (IOM) has had a NICs Social Security Agreement in place since 1948.? Since 1977, a Social Security Order with the UK has been in place, amended several times.? The effect of this Order are that:?

• The IOM and the UK are treated as a single area for liability to NICs and, similarly,
• The two separate Social Security schemes are treated as one (though the IOM did not introduce the Single-Tier State Pension in 2016 and the two regimes are separate for people reaching State Pension age after 06 April 2016)

The amendment to the CWG2 only includes reference to an Order between the UK and IOM that has been in place for years.? It does not actually change anything that we do on an operational day-to-day basis.?

The same guidance that has applied for years continues to apply:?

• Employees working abroad
• New employee coming to work from abroad , and
• People going to or coming from abroad (from HMRC’s National Insurance Manual)

?

It’s not a very exciting update at all and only adds something that should always have been there. It's hardly news (though it is nice to have an explanation, hence this post).

As always, though, employers should download the latest version of the CWG2 and store it electronically.