ECH6125 - Liaison - E101 Team

E101 Certificate – workers posted to other European States

When a UK employee is posted abroad to another European Union member state, and wishes to remain in the UK social security system, an E101 Certificate can be applied for. Once an E101 certificate is issued the employee is still liable to UK National Insurance Contributions regardless of the tax and residence status.

The Centre for Non-Residents in Newcastle is the statutory UK authority for the issue and withdrawal of E101 certificates.

A specialist E101 Team, based at Trinity Bridge House, Salford, carries out E101 application audits and EC compliance checks on a national basis.

UK NIC’s are generally the lowest in Europe and employers can undercut competitors by manipulating the system. Risks addressed by the team are:

• applications for UK E101’s when the employee is not a UK national
• applications from foreign employers who have no presence in the UK
• failing to pay NIC’s in the UK despite using the E101 to avoid paying contributions in the overseas country
• manipulating subsistence and accommodation expenses for posted workers
• operating NT codes without authority, and
• all the EC risks associated with non E101 employers.

In all cases where E101 certificates is an issue you should

• contact the E101 team for advice on how to proceed (This text has been withheld because of exemptions in the Freedom of Information Act 2000)