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Brexit

Social Security Coordination post Brexit

All EU Member States to opt in to Social Security Coordination post Brexit

The UK-EU Agreement provides for continued coordination of social security for workers who move between the UK and the EU.  This means these workers may be able to pay social security in just one country.  Before the UK left the EU and during its transition period, EU regulation provided that workers moving between EU member states could, pay social security in a single country, often their normal country of residence.

Once the UK left the EU, this would no longer apply.  Although an agreement was reached between Ireland and the UK early on in the transition process and social security coordination was provided for in the withdrawal agreement, it was unclear how this would work in practice.

An Agreement has now been reached and individuals working temporarily in either the UK or the EU may be able to continue to pay social security in just one country, provided the relevant EU country has agreed to apply the “detached worker” rules.

Under these detached worker rules, UK workers sent to work in the EU can continue to pay National Insurance Contributions in the UK (for up to 24 months) and be exempt from paying foreign social security.  Likewise, workers sent to work in the UK can remain liable to social security in their EU country of residence.

Where an EU country does not apply these rules, then workers will have to pay social security in the country they are working in temporarily.

The process for applying for these rules remains the same.  The employer can continue to apply online on behalf of the employee they are sending abroad, for an A1 social security certificate.

All EU member states have indicated that they wish to opt into the new detached worker rules.

For workers who started to work in the other country before 1 February 2021, then they will still be entitled to obtain a social security certificate under the previous rules.

The application process is best managed online and the Employer can submit applications using their PAYE dashboard login details.

See our Brexit Hub

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