HM Revenue and Customs has provided information following the UK and EU free trade deal that has been made.  As many of you are aware the UK has been trying to reach a Brexit agreement on key issues. An agreement has finally been reached.  Certain aspects of the agreement may affect you or your business so please check.

HM Revenue and Customs released some guidance on the 28 December 2020.  This latest update on the future is on Social Security and the agreement that has been made.

Social Security Scheme – UK and EU Workers

New rules have been set out called the Detached Worker Rule.  This Detached Worker Rule is for paying your Social Security and where you will need to pay this.  You will need to ensure that you do not make double payments.  This agreement and the Detached Worker Rule means that you will only make a payment to one country, either the UK or EU and not to both. 

The Detached Worker Rule

The first aspect is whether the EU country your employer is based in, which ever country they are based whether the UK or the EU has agreed to apply the Rules within the Detached Worker Rules.  So, if you are working in the UK check if the UK is a part of The Detached Worker Scheme.  If you are working in the EU then you too will need to check if that EU Country your employer is based in has agreed to the Scheme.  Remember this is to find out where you will pay your Social Security Contributions.

The HM Revenue and Customs stated the following:

Where an EU country has agreed to apply these rules: UK workers who are sent by their employer will only need to pay National Insurance contributions for the period of work in the EU country (up to 24 months). More information on going to work temporarily in the EU can be found on GOV‌‌‌.UK. Information is also included on going to work temporarily in Norway, Iceland, Liechtenstein and Switzerland. EU workers sent by their employer to work temporarily in the UK from a country which has agreed to apply the detached worker rule will remain liable to only pay social security contributions in the EU country. More information on coming to work in the UK can be found on GOV‌‌‌.UK. Information is also included on coming to work temporarily in the UK from Norway, Iceland, Liechtenstein and Switzerland. For EU countries that don’t apply these rules, you and your employee will be liable to pay contributions in the country where they are temporarily working if the they are not in scope of the Withdrawal Agreement.

What you should do if you go to work in the EU : You should continue to apply to HMRC for the same forms on behalf of the individual going to work in the EU. If they do not qualify for a certificate, you or your employee will need to contact the relevant EU social security institution to start paying social security contributions in that country.