Individuals moving abroad permanently for work will typically only pay social security contributions in the country they move to. However, the position is much more complicated if the period of overseas work is only temporary, and can vary depending on the type of work they do.

If a UK employee goes to work temporarily in a country with which the UK has a social security agreement, UK NICs will often still be payable whilst they’re working abroad. Such countries include those in the European Union, as well as Iceland, Liechtenstein, Norway and Switzerland. The employee will need to obtain a certificate proving they’re paying UK NICs, in order to exempt them from social security deductions in the country where they’re working temporarily.

If no social security agreement exists between the UK and the overseas country in question, social security may be payable in both countries for the first 52 weeks of the secondment if the employer has a UK place of business and the employee is classified as ordinarily resident in the UK.

Beyond those 52 weeks, the employee may wish to make voluntary NIC payments in order to preserve entitlement to certain UK social security benefits when they return to the UK, and the State Pension.

To help taxpayers understand their obligations, HMRC have launched an interactive tool to help decipher the NIC position for individuals going to work abroad temporarily. The tool is designed for a range of users, including employers and employees.

It’s important to remember that international social security obligations can be very complex. The UK has reciprocal social security agreements with some countries but not all, and the precise details of the employment relationship can be critical. HMRC’s Guidance on social security abroad contains some useful information, but bespoke advice may be needed in order for employers and employees to properly understand their specific circumstances.

 

This article reflects the position at the date of publication (14 November 2023). If you are reading this at a later date you are advised to check that that position has not changed in the time since.   

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