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Social Security and employees working temporarily abroad

An individual will generally be subject to social security in the country they are living and working in.

Where a UK-based individual is temporarily working outside of the UK, there may be an agreement that allows them to remain within the UK social security without the need to pay social security in the host country.

The UK has social security agreements with the EU and over 20 other countries around the world. Under these agreements, the employee can normally remain in the UK social security scheme for between two and five years, during which nothing is payable in the host country. To prove to the host country authorities that the individual continues to pay UK social security, the UK tax authorities will issue either an A1 certificate (EU) or a Certificate of Coverage (CoC – non-EU).

HMRC commissioned a report by Kantar Public UK in the second half of 2021 to look at the practical issues arising in respect of the A1/CoC application process. They conducted 50 in-depth interviews with recent applicants across three specific groups (self-employed, employers and agents).

The final report was issued in February 2023 and the key takeaways from the report are detailed below.

The research with the respondents looked at potential changes to the application process and focused on the following:

HMRC has started to take on some of the report’s findings and has now issued a more intelligent CA3822 form (used for posted workers). The form is designed to streamline the application process and the long-term intention is for the whole process to become far quicker.

Given that cross-border travel is returning to normal and more individuals are working for short periods in the EU and other reciprocal agreement countries (often at short notice), it is good to see that HMRC are looking to improve the application system.

If you have any questions or concerns about NIC / social security and your globally mobile employees, please contact Jo Webber or Ian Jones, who can help you to review the position.

authors:joanne-webber,authors:ian-jones