Working in Social Security Agreement Countries
The UK has Social Security agreements with a number of other countries. Special National Insurance rules apply to people working in the countries listed. These agreements are called Reciprocal Agreements (RAs) and Double Contribution Conventions (DCCs). Each agreement varies. The main rules for employees and the self-employed are here, but we recommend you contact HMRC Residency for advice before you go abroad.
Employees
Working in a Reciprocal Agreement or Double Contribution Convention (RA or DCC) country
- Basic Rule - You pay contributions in the country where you work
- Exception for people sent to work in a Reciprocal Agreement or Double Contribution Convention (RA or DCC) country
- Posting Periods
- Special Groups
Basic Rule - You pay contributions in the country where you work
If you work in a country with which the UK has a Reciprocal Agreement or Double Contribution Convention you are usually insured under the social security laws of the country you work in. You will not usually have to pay UK National Insurance contributions. But this is not always the case.
Exception for people sent to work in a country with which the UK has a Reciprocal Agreement or Double Contribution Convention (RA or DCC)
An exception to the general rule concerns posted workers. The employer and employee remain liable for Class 1 NIC where the employee:
- is employed in the UK; and
- posted by that employer to work in another RA or DCC country; and
- the posting is for a period not exceeding the maximum posting period allowed by the terms of the RA or DCC (the maximum period of posting will depend on the RA country)
The employer should obtain a certificate of continuing liability from HMRC Residency (Newcastle) to prevent a demand for payment of contributions in the other country.
Posting Periods
If you are sent by your employer to work in a Reciprocal Agreement or Double Contribution convention country you remain UK insured (and exempt from foreign contributions) providing that your posting is not expected at the outset to exceed a certain length of time. The posting period for each agreement is set out in the table below:
| Country | Posting Period | Notes |
|---|---|---|
| Barbados | 3 years | - |
| Bermuda | 12 months | - |
| Canada | 5 years | - |
| Guernsey | 3 years | - |
| Isle of Man |
- | This agreement is limited and liability is generally determined under place of residence. There are no time limits |
| Israel | 2 years | - |
| Jamaica | 3 years | - |
| Japan | 5 years | - |
| Jersey | 3 years | - |
| Korea | 5 years | - |
| Mauritius | 2 years | - |
| Philippines | 3 years | - |
| Turkey | 3 years | - |
| USA | 5 years | - |
| Yugoslavia |
12 months | Including former Republics - EC Rules apply to Slovenia from 1 May 2004 |
Special Groups
Some Reciprocal Agreements and Double Contribution Conventions contain special provisions for certain groups of workers including;
- People who normally work in both the UK and the other country with which the UK has an agreement;
- Aircrew;
- People who are simultaneously self employed in one country and employed in another;
- Civil Servants and other government workers;
- People who work in diplomatic missions, consular posts and embassies. People who work for a member of the staff of a diplomatic mission or consular posts and embassies;
- People who work for a member of the staff of a diplomatic mission or consular posts and embassies; and
- Members of Her Majesty’s (HM) Forces and civilians who work for an organisation that serves HM Forces.
In the main, people in these groups remain insured and pay contributions to their home country. However, we recommend you contact HMRC Residency (Newcastle) for advice if you fall in one of these categories.
Some agreements also contain provisions for Mariners.
Self Employed
Working in a country with which the UK has a Reciprocal Agreement or Double Contribution Convention (RA or DCC)
Basic Rule - You pay contributions in the country where you work
If you work in a country with which the UK has a Reciprocal Agreement or Double Contribution Convention you are usually insured under the social security laws of the country you work in. You will not usually have to pay UK National Insurance contributions. But this is not always the case.
Exception for people who are normally self employed in the UK –who then work in a Reciprocal Agreement or Double Contribution Convention (RA or DCC) country
Most of these agreements have a provision for someone who is in business for them selves in the UK to continue that business in the other country whilst remaining UK insured.
You should apply to obtain a certificate of continuing liability from HMRC Residency (Newcastle) to prevent a demand for the payment of contributions in the other country.
You will have to pay Class 2 and possibly Class 4 NI contributions as if you were still in the UK. Providing you have a certificate from HMRC Residency (Newcastle) you will not have to pay into the social security scheme of the other Reciprocal Agreement or Double Contribution Convention country.
