Paying NIC if you go abroad

Source: HM Revenue & Customs | | 06/02/2018

If you move abroad it can be advantageous to continue paying UK National Insurance Contributions (NICs) in order to preserve your entitlement to the State Pension and other benefits. If you are working in the European Economic Area the rules depend on your situation. The EEA includes all EU countries as well as Iceland, Liechtenstein and Norway. The same rules apply in Switzerland.

The rules are as follows:

  • If you work for an employer in the EEA. You’ll normally pay social security contributions in the EEA country you work in instead of NICs. This means you’ll be covered by that country’s social security laws and may be entitled to benefits there but your entitlement to benefits in the UK (for example State Pension) may be affected as there’ll be a gap in your NIC contributions.
  • If your UK employer sends you to work in the EEA. You might be able to carry on paying NICs if you’re abroad for up to 2 years. This means you won’t have to pay social security contributions abroad. There is special form which your employer must complete to notify HMRC.
  • There are special rules if you are self-employed or working in two or more EEA countries (including the UK).
  • Some countries have a Reciprocal Agreement (RA) or Double Contribution Convention with the UK. These countries include the USA and Japan. You will usually pay social security contributions in that country instead of NICs.
  • For all other countries you can usually continue paying NICs for the first 52 weeks you’re abroad if you meet the qualifying conditions.

Planning note

Please call for advice if you are considering working abroad and want to maintain your NIC contributions in the UK.



Toggle

Latest News

Beware sting in VAT Annual Accounting Scheme
22/05/2018 - More...
The VAT annual accounting scheme is open to most businesses with a turnover of up to £1.35m per year. The main benefits

Give now pay later – what are the settlement rules?
22/05/2018 - More...
The settlement rules are intended to prevent an individual from gaining a tax advantage by making arrangements that

Company van use – the tax consequences
22/05/2018 - More...
There are a number of tax consequences to be aware when employees are provided with company vans and fuel. A company van

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

Search News


Our Address

Sterlings Ltd
Chartered Accountants
Lawford House,
Albert Place,
London N3 1QA

 

Company Registration No: 1357789
Registered in England and Wales
VAT No: 802 8138 49

Contact Us

tel: 020 8343 2255
e fax: 0871 474 2696
This email address is being protected from spambots. You need JavaScript enabled to view it.

Why Choose Us

Our Number

In the world of accountancy these are the only numbers you need -
020 8343 2255