Brexit: Social Security rules from 1st January 2021

Brexit: Social Security rules from 1st January 2021

For employees, employers, and the self-employed, from 1st January 2021 where social security contributions are paid depends on individual circumstances and the country where the work takes place.

If working in the EU, Norway or Switzerland, contributions into only one country’s social security scheme are payable at a time. This will usually be in the country where the work takes place.

But if working temporarily in the EU, Norway, Iceland, Switzerland or Liechtenstein, it may be possible to get an A1 certificate or document from HMRC to carry on paying National Insurance contributions in the UK, which means no social security contributions are payable abroad.

Follow this link to HMRC’s guidance for workers from the UK who are working in the EEA or Switzerland. 

Follow this link to HMRC’s guidance for workers coming to the UK from the EEA and Switzerland.

Aspire Comment:

The new rules are considerably less advantageous than the previous arrangements.  A concern is that, except for Iceland, there is uncertainty that the A1 or equivalent document can be extended beyond the prescribed period.  This could have implications for UK employers sending international assignees to countries with higher social security regimes; for example, Belgium, France and Italy.