Tier 2 (ICT) - Exemption from NI Deductions in 1 Year

Hello

My query is related to the rule around NI deduction in the first year for Tier 2 ICT immigrants.

I arrived in the UK in Oct-15 under Tier 2 ICT from India. My employer has been deducting NI and Income tax each month. I was put on LOA in home Country (India) and have joined the UK subsidiary of the same employer. I was provided with a offer letter from the UK Subsidiary.

I have a friend of mine who also arrived to UK under Tier 2 ICT and arrived in UK in Nov-15 via a different employer from India. However, his employer is not deducting any NI/Income tax.

Is there a rule/policy that NI Deductions are no applicable for the first 12 months (52 weeks)? Tried exploring HMRC site but its not very clear. Please help.

R/Pankaj

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