The main story in this bulletin for UK employers relates to social security for employees sent to work in the EU, the EEA or Switzerland. However, the Employer Bulletin also highlights other Brexit guidance, webinars and training grants available.
The bulletin emphasises that if the UK leaves the EU without an agreement, the existing EU Social Security Coordination Regulations which ensure employers and their workers only need to pay social security contributions (such as National Insurance contributions in the UK) in one country at a time will come to an end. This may mean that employees need to make contributions in both the UK and the country in which they are working.
If an employee working in the EU, the EEA or Switzerland has a UK-issued A1/E101 form, they will need to continue paying UK National Insurance contributions for the duration of the time shown on the form. Where the end date on the A1/E101 form is after the UK leaves the EU, the employer should contact the relevant EU / EEA or Swiss authority to confirm whether or not their employees need to start paying social security contributions in that country too. The relevant country’s authority can be found on the European Commission’s website.
However, where the employee is a UK or Irish national working in Ireland the good news is that their position will not change.
Where employees are posted to EEA countries and want to maintain their UK social security record after Brexit, they will still need to make an application to do so. Form A1/E101 will be replaced after Brexit, but the same online form will be available.
HMRC also published guidance in April 2019, Social security contributions for UK and EU, EEA and Swiss workers if the UK leaves the EU with no deal.
The Tax Faculty thinks that the reciprocal social security agreements that were in force before the UK joined the Common Market may revive if there is a no-deal Brexit and we have raised this with HMRC.
Further Brexit-related information from ICAEW can be found at icaew.com/brexit.