Important information for self-employed persons going to European Economic Area countries

Please read the following information before completing the application form CA3837 (PDF 41K).

If you go to work in other European Economic Area (EEA) countries special rules may apply to you to keep you subject to UK National Insurance contributions and exempt from foreign contributions.

EEA nationals: going to work in another EEA country or Switzerland for a period not expected to exceed 24 months

There are special rules for workers who go to another EEA country or Switzerland to work there for a maximum of 24 months. These rules are mainly contained in European Community Regulations 883/2004, 987/2009 and Decision No A2 of the Administrative Commission of the European Communities on Social Security for Migrant Workers. These rules operate from 1 May 2010 but if you will still be away after 1 May 2010 you can apply now.

Under these rules a person who is normally self-employed in the UK, who pursues a similar activity in another Member State continues to be subject to UK contributions legislation only, for up to 24 months, providing the work abroad is not expected to last more than 24 months at the outset.

Certain other conditions have to be met. The main ones are that the person has to:

  • habitually carry out substantial activities in the UK
  • pursue the self-employed activity in the UK (generally for at least two months) before going abroad
  • maintain the means in the UK to carry out the self-employment when they return

Examples of maintaining the means to carry on the self-employment could be retaining the use of office space or the infrastructure needed to pursue activity on return such as paying social security contributions and taxes, having a VAT number and registration with the chamber of commerce or professional bodies. This is only intended to serve as a guide, given that different types of work and professions will produce different indicators.

We are also likely to ask you for details of contracts and work carried on in the UK and those contracts carried on abroad to consider whether you habitually carry on substantial activities in the UK. If less than 25 per cent of turnover or contracts are carried on in the UK, then we would not usually consider that substantial.

Non-EEA nationals legally resident: going to work in another EEA country or Switzerland for a period not expected to exceed 24 months

If you are not an EEA national but are legally resident in a Member State and going to another EEA country (other than Denmark) for a period not expected to exceed 12 months then you may be covered by special rules in European Community Regulations 1408/71 and Administrative Commission Decision 181.

To satisfy these rules a self-employed worker must:

  • Have been self-employed in the UK before going to work in another EEA country or Switzerland. The Decision explains that this means the person must have been pursuing significant activities for a certain length of time in the home country before moving to another EEA country to work. This will generally be accepted provided at least two months work on a self-employed basis has been carried out in the UK before the start of the employment abroad.
  • Be able to substantiate, if necessary by producing the relevant contracts, details of the work to be performed abroad.
  • While working abroad continue to maintain in the UK the conditions enabling him to resume work on return. Examples of this could be retaining the use of office space or the infrastructure needed to pursue activity on return such as paying social security contributions and taxes, having a VAT number and registration with the chamber of commerce or professional bodies. This is only intended to serve as a guide, given that different types of work and professions will produce different indicators.

Administrative Commission Decision No 181 also requires checks to be made which can be at any time throughout the period shown on the form E101 to ensure that the conditions of the work being undertaken have not changed. For this reason any change which occurs during that period either before going abroad or whilst abroad must be notified to HM Revenue & Customs NIC&EO International Caseworker whose full details are shown under contact information.