HMRC has cleared up a key rule for staff working between the UK and India. On 7 October 2026, it updated its guidance for workers who were abroad before a new deal took effect. Employers may now need to check past payroll records, not just new staff moves.
The UK–India Double Contributions Convention was signed on 10 February 2026. It took effect on 15 July 2026. It aims to stop eligible staff and firms from paying social security charges in both nations for the same work.
What Did HMRC Change in October 2026?
The new guidance covers some staff whose overseas work began from 15 July 2025 to 14 July 2026. They do not get a five-year exemption just because the deal took effect.
Eligible Indian staff who were already in the UK on 15 July 2026 can stay exempt from UK National Insurance for their first 52 weeks of work. They need no Indian certificate for this short-term rule. UK Class 1 payments start after that period ends.
UK staff who were already in India can ask HMRC for a certificate. This lets them keep paying UK Class 1 National Insurance for the rest of their first 52 weeks. Each case depends on the dates and work terms.
Who Qualifies the 60-Month National Insurance Rule?
Under the main rule, eligible employees sent to work abroad can stay in their home social security scheme for up to 60 months, or five years. The limit was first set at 36 months. It rose to 60 months before the deal began.
Before the move, workers must have been covered by their home scheme for at least 30 days or the prior calendar month. Repeat postings usually need a six-month gap. If the first posting was under six months, the gap may be shorter.
How Can Employers Get a Certificate of Coverage?
UK employers sending staff to India can apply to HMRC using form CA9107. Indian employers sending staff to the UK should get proof from India’s Employees’ Provident Fund Organization, or EPFO.
Apply early and keep the certificate with payroll records. It shows which nation collects the payments. Without clear proof, firms may face checks or disputes. Some existing Indian postings to the UK are exempt from this certificate rule for their first 52 weeks.
Does the Deal Cover Income Tax, Pensions or Freelancers?
No. It covers social security payments, not income tax. UK PAYE and Indian tax rules still need a separate check. Self-employed workers are not covered. Nor does the deal add UK and Indian work years together to earn state pension rights.
Workers covered by Indian social security rules cannot pay voluntary UK National Insurance for the same period.
How Should UK Employers Prepare for the New NI Rules?
Employers should review staff working between the UK and India. Check assignment dates, posting periods, certificates, and payroll records. Pay close attention to employees sent abroad before 15 July 2026, as different rules may apply. Failing to check could lead to unpaid contributions, extra costs, and payroll corrections.
How Can Lanop Help With UK–India Payroll Compliance?
The new UK–India National Insurance rules may affect how employers manage overseas staff and payroll costs. Lanop Business & Tax Advisors can help businesses understand these changes and review their National Insurance obligations.
Our team can assess employee posting dates, check eligibility for the 60-month exemption, and review how HMRC’s October transitional guidance affects existing assignments. We can also help employers identify certificate requirements, check UK payroll deductions, and address possible contribution errors.
With the right advice, employers can avoid unnecessary payments, reduce compliance risks, and keep accurate payroll records. Contact LANOP to review your UK–India workforce arrangements and prepare for the new requirements.
